Principles of Corporate Finance 11th solution 习题答案

Chapter01-GoalsandGovernanceoftheFirm1-1CHAPTER1GoalsandGovernanceoftheFirmAnswerstoProblemSets1.a.realb.executiveairplanesc.brandnamesd.financiale.bondsf.investmentg.capitalbudgetingh.financing2.c,d,e,andgarerealassets.Othersarefinancial.3.a.Financialassets,suchasstocksorbankloans,areclaimsheldbyinvestors.Corporationssellfinancialassetstoraisethecashtoinvestinrealassetssuchasplantandequipment.Somerealassetsareintangible.b.Capitalbudgetingmeansinvestmentinrealassets.Financingmeansraisingthecashforthisinvestment.c.Thesharesofpubliccorporationsaretradedonstockexchangesandcanbepurchasedbyawiderangeofinvestors.Thesharesofcloselyheldcorporationsarenottradedandarenotgenerallyavailabletoinvestors.d.Unlimitedliability:investorsareresponsibleforallthefirm’sdebts.Asoleproprietorhasunlimitedliability.Investorsincorporationshavelimitedliability.Theycanlosetheirinvestment,butnomore.e.Acorporationisaseparatelegal“person”withunlimitedlife.Itsownersholdsharesinthebusiness.Apartnershipisalimited-lifeagreementtoestablishandrunabusiness.Chapter01-GoalsandGovernanceoftheFirm1-24.c,d.5.b,c.6.Separationofownershipandmanagementtypicallyleadstoagencyproblems,wheremanagersprefertoconsumeprivateperksormakeotherdecisionsfortheirprivatebenefit--ratherthanmaximizeshareholderwealth.7.a.Assumingthattheencabulatormarketisrisky,an8%expectedreturnontheF&Hencabulatorinvestmentsmaybeinferiortoa4%returnonU.S.governmentsecurities.b.UnlesstheirfinancialassetsareassafeasU.S.governmentsecurities,theircostofcapitalwouldbehigher.TheCFOcouldconsiderwhattheexpectedreturnisonassetswithsimilarrisk.8.Shareholderswillonlyvotefor(a)maximizeshareholderwealth.Shareholderscanmodifytheirpatternofconsumptionthroughborrowingandlending,matchriskpreferences,andhopefullybalancetheirowncheckbooks(orhireaqualifiedprofessionaltohelpthemwiththesetasks).9.Iftheinvestmentincreasesthefirm’swealth,itwillincreasethevalueofthefirm’sshares.Ms.Espinozacouldthensellsomeorallofthesemorevaluablesharesinordertoprovideforherretirementincome.10.AsthePutnamexampleillustrates,thefirm’svaluetypicallyfallsbysignificantlymorethantheamountofanyfinesandsettlements.Thefirm’sreputationsuffersinafinancialscandal,andthiscanhaveamuchlargereffectthanthefineslevied.Investorsmayalsowonderwhetherallofthemisdeedshavebeencontained.11.Managerswouldactinshareholders’interestsbecausetheyhavealegaldutytoactintheirinterests.Managersmayalsoreceivecompensation,eitherbonusesorstockandoptionpayoutswhosevalueistied(roughly)tofirmperformance.Managersmayfearpersonalreputationaldamagethatwouldresultfromnotactinginshareholders’interests.Andmanagerscanbefiredbytheboardofdirectors,whichinturniselectedbyshareholders.Ifmanagersstillfailtoactinshareholders’interests,shareholdersmayselltheirshares,loweringthestockChapter01-GoalsandGovernanceoftheFirm1-3price,andpotentiallycreatingthepossibilityofatakeover,whichcanagainleadtochangesintheboardofdirectorsandseniormanagement.12.Managersthatareinsulatedfromtakeoversmaybemorepronetoagencyproblemsandthereforemorelikelytoactintheirowninterestsratherthaninshareholders’.Ifafirminstitutedanewtakeoverdefense,wemightexpecttoseethevalueofitssharesdeclineasagencyproblemsincreaseandlessshareholdervaluemaximizationoccurs.Thecounterargumentisthatdefensivemeasuresallowmanagerstonegotiateforahigherpurchasepriceinthefaceofatakeoverbid–tothebenefitofshareholdervalue.AppendixQuestions:1.Bothwouldstillinvestintheirfriend’sbusiness.Ainvestsandreceives$121,000forhisinvestmentattheendoftheyear(whichisgreaterthanthe$120,000itwouldreceivefromlendingat20%).Galsoinvests,butborrowsagainstthe$121,000payment,andthusreceives$100,833today.2.a.Hecouldconsumeupto$200,000now(foregoingallfutureconsumption)orupto$216,000nextyear(200,000*1.08,foregoingallconsumptionthisyear).Tochoosethesameconsumption(C)inbothyears,C=(200,000–C)x1.08orC=$103,846.203,704200,000220,000216,000DollarsNextYearDollarsNowb.Heshouldinvestallofhiswealthtoearn$220,000nextyear.Ifheconsumesallthisyear,hecannowhaveatotalof$203,703.7(200,000x1.10/1.08)thisyearor$220,000nextyear.IfheconsumesCthisyear,theamountavailablefornextyear’sconsumptionis(203,703.7–C)x1.08.Togetequalconsumptioninbothyears,settheamountconsumedtodayequaltotheamountnextyear:C=(203,703.7–C)x1.08C=$105,769.2Chapter02-HowtoCalculatePresentValues2-1CHAPTER2HowtoCalculatePresentValuesAnswerstoProblemSets1.Ifthediscountfactoris.507,then.507*1.126=$12.125/139=.8993.PV=374/(1.09)9=172.204.PV=432/1.15+137/(1.152)+797/(1.153)=376+104+524=$1,0035.FV=100*1.158=$305.906.NPV=-1,548+138/.09=-14.67(costtodayplusthepresentvalueoftheperpetuity)7.PV=4/(.14-.04)=$408.a.PV=1/.10=$10b.Sincetheperpetuitywillbeworth$10inyear7,andsincethatisroughlydoublethepresentvalue,theapproximatePVequals$5.PV=(1/.10)/(1.10)7=10/2=$5(approximately)c.Aperpetuitypaying$1startingnowwouldbeworth$10,whereasaperpetuitystartinginyear8wouldbeworthroughly$5.Thedifferencebetweenthesecashflowsisthereforeapproximately$5.PV=10–5=$5(approximately)d.PV=C/(r-g)=10,000/(.10-.05)=$200,000.9.a.PV=10,000/(1.055)=$7,835.26(assuming