罗斯《公司理财》英文习题答案chap021

公司理财习题答案第二十一章AnswerstoEnd-of-ChapterProblemsB-187Chapter21:Leasing21.1a.Leasingcanreduceuncertaintyregardingtheresalevalueoftheassetthatisleased.b.Leasingdoesnotprovide100%financingalthoughitmaylookasthoughitdoes.Sincefirmsmusttrytomaintaintheiroptimaldebtratio,theuseofleasesimplydisplacesdebt.Thus,leasingdoesnotprovide100%financing.c.Althoughitistruethatleasingdisplacesdebt,empiricalstudiesshowthatthecompaniesthatdoalargeamountofleasingalsohaveahighdebt-to-equityratios.d.Ifthetaxadvantagesofleasingwereeliminated,leasingwouldprobablydisappear.Themainreasonfortheexistenceoflong-termleasingisthedifferentialinthetaxratespaidbythelesseeandthelessor.21.2a.NPV(lease)=$250,000-L508.0=$250,000-3.9927L=$0L=$62,614.11TheleasepaymentisQuartz’areservationprice.b.Depreciation=$250,000/5=$50,000perannumDepreciationtaxshield=$50,0000.35=$17,500After-taxdiscountrate=0.08(1-0.35)=0.052NPV(lease)=-$250,000+L(1-0.35)5052.0+$17,5005052.0=$0L=$62,405.09ThisleasepaymentisNewLeasingCo’sreservationprice.c.IftheleasepriceisgreaterthanQuartz’sreservationprice,theleaseisanegativeNPVproposalforQuartz.Quartzwouldratherpurchasetheequipmentthanleaseatapaymentaboveitsreservationprice.Thus,thelessee’sreservationpriceisthemaximumofthenegotiationrange.AnswerstoEnd-of-ChapterProblemsB-18821.3Incrementalcashflowsfromleasinginsteadofpurchasing:LeaseminusBuyYear0Year1-5LeaseLeasepayment-$94,200Taxbenefitofleasepayment$32,970Buy(minus)Costofmachine-(-$350,000)Lostdepreciationtaxbenefit-$350,000/50.35=-$24,500Total$350,000-$85,730NPV=$350,000-$85,730565.011.0=-$102.66$0Thefirmshouldbuythemachine.24.4Maxwell’sreservationprice:NPV(lease)=$200,000-L510.0=$200,000-3.7908L=$0L=$52,759.50Mercer’sreservationprice:Depreciation=$200,000/5=$40,000perannumDepreciationtaxshield=$40,0000.35=$14,000After-taxdiscountrate=0.10(1-0.35)=0.065NPV(lease)=-$200,000+L(1-0.35)5065.0+$14,0005065.0=$0L=$52,502.94Therefore,thenegotiationrangeisfrom$52,502.94to$52,759.50.21.5ReservationpaymentofRaymond:Valueoflease=$100,000-0.75L575.008.0=$0L=$31,652.85ReservationpaymentofLiberty:Valueoflease=-$100,000+L=$24,962.04Therefore,thenegotiationrangeisfrom$24,962.04to$31,652.85.Forleasepaymentshigherthan$31,652.85,Raymondwillnotenterintothearrangement.Forleasepaymentslowerthan$24,962.04,Libertywillnotenterintothearrangement.565.008.035.05000,100公司理财习题答案第二十一章AnswerstoEnd-of-ChapterProblemsB-18921.6a.Theleasepayment,whichmakesbothpartiesequallywelloff,isthepayment,whichequatestheNPVsforthefirms.Sincethetaxratesofthetwofirmsareequal,theperspectiveofthelessoristheoppositeoftheperspectiveofthelessee.ThisconditionensuresthattheNPViszero.After-taxcashflowstothelessor=L(1-0.34)+Depreciation(0.34)Depreciation=$86.87/2=$43.435TheNPViszerowhentheNPVofthelessor’safter-taxcashflowsequalsthecostoftheasset.Theappropriatediscountrateistheafter-taxrate.Thatrateis6.6%[=10%0.66].$86.87=[0.66L+$43.435(0.34)]2066.0$86.87=[0.66L+$43.435(0.34)](1.8181)L=$50.02b.Generalizetheresultfromparta.LetT1denotethelessor’staxrate.LetT2denotethelessee’staxrate.LetPdenotethepurchasepriceoftheasset.LetDepequaltheannualdepreciationexpense.LetNdenotethelengthoftheleaseinyears.Valuetothelessor=N1tt111)]T1(r1[)T(Dep)T1(LPValuetothelessee=N1tt222)]T1(r1[)T(Dep)T1(LPThevaluesoftheleasetoitstwopartieswillbeoppositeinsignonlyifT1=T2.c.Sincethelessor’staxbracketisunchanged,theleasehasazeroNPVtothelessorwhentheleasepaymentis$50.02.Ifthelesseepaysnotaxes,thepre-taxandafter-taxleasepaymentarethesame.Also,oneofthelessee’scashflowsisthedepreciationthatisforegonewhenleasingischosenoverpurchasing.Ifthelessee’staxrateiszero,itwillnotbenefitfromdepreciation.Thus,ifthelesseechoosesleasing,thelostdepreciationisnolongeracashflow.TheleasehasazeroNPVtothelesseewhenL=$50.05.L210.0=$86.87L=$86.87/1.7355=$50.05IfL$50.05theNPVtothelesseeis$0.IfL$50.05theNPVtothelesseeis$0.IfL$50.05theNPVtothelessoris$0.IfL$50.05theNPVtothelessoris$0.BothpartieshavepositiveNPVfor$50.02L$50.05.21.7a.Assumethat10%isthemarket-wideinterestrate.Thedecisiontobuyorleaseismadebylookingattheincrementalcashflows.AnswerstoEnd-of-ChapterProblemsB-190Cashflowsfromleasing:Year012345A/Tsavings*$3,960$3,960$3,960$3,960$3,960Leasepayment-2,100-2,100-2,100-2,100-2,100Taxbenefit**714714714714714Netcashflows2,5742,5742,5742,5742,574*Aftertaxsavingsonoperations=$6,0000.66=$3,960**Taxbenefit=$2,1000.34=$714Cashflowsfrompurchasing:Year012345A/Tsavings*$5,940$5,940$5,940$5,940$5,940Purchase-15,000Deptaxshield**1,0201,0201,0201,0201,020Netcashflows-15,0006,9606,9606,9606,9606,960*Aftertaxsavingsonoperations=$9,0000.66=$5,940**Depreciation=$15,000/5=$3,000perannumDepreciationtaxshield=$3,0000.34=$1,020Incrementalcashflowsfromleasingvs.purchasing:Year012345Lease$2,574$2,574$2,574$2,574$2,574Purchase-15,0006,9606,9606,9606,9606,960L–P15,000-4,386-4,386-4,386-4,386-4,386NPVoftheincrementalcashflows:Thecashflowsmustbediscountedattheaftertaxratewhichis6.6%[=10%0.66].NPV=$15,000-$4,3865066.0=$15,000-$4,386(4.1445)=-$3,177.78SincetheN