公司理财(罗斯)第1章(英文).pptx

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1、McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-0CHAPTER1Introduction to Corporate Financehttp:/ Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-1Chapter Outline1.1 What is Corporate Finance?1.2 Corporate Securities as Contin

2、gent Claims on Total Firm Value1.3 The Corporate Firm1.4 Goals of the Corporate Firm1.5 Financial Markets1.6 Outline of the TextMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-2What is Corporate Finance?Corporate Finance addresses the following thre

3、e questions:1.What long-term investments should the firm engage in?2.How can the firm raise the money for the required investments?3.How much short-term cash flow does a company need to pay its bills?McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-3

4、The Balance-Sheet Modelof the FirmCurrent AssetsFixed Assets1 Tangible2 IntangibleTotal Value of Assets:Shareholders EquityCurrent LiabilitiesLong-Term DebtTotal Firm Value to Investors:McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-4The Balance-Sh

5、eet Modelof the FirmCurrent AssetsFixed Assets1 Tangible2 IntangibleShareholders EquityCurrent LiabilitiesLong-Term DebtWhat long-term investments should the firm engage in?The Capital Budgeting DecisionMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.

6、1-5The Balance-Sheet Modelof the FirmHow can the firm raise the money for the required investments?The Capital Structure DecisionCurrent AssetsFixed Assets1 Tangible2 IntangibleShareholders EquityCurrent LiabilitiesLong-Term DebtMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies,

7、 Inc. All Rights Reserved.1-6The Balance-Sheet Modelof the FirmHow much short-term cash flow does a company need to pay its bills?The Net Working Capital Investment DecisionNet Working CapitalShareholders EquityCurrent LiabilitiesCurrent AssetsFixed Assets1 Tangible2 IntangibleLong-Term DebtMcGraw-H

8、ill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-7Capital StructureThe value of the firm can be thought of as a pie,it will depend on how well the firm has made its investment decisionThe goal of the manager is to increase the size of the pie.The Capital Str

9、ucture decision can be viewed as how best to slice up a the pie.If how you slice the pie affects the size of the pie, then the capital structure decision matters.50% Debt50% Equity25% Debt75% Equity70% Debt30% EquityMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rig

10、hts Reserved.1-8Hypothetical Organization ChartChairman of the Board and Chief Executive Officer (CEO)Board of DirectorsPresident and Chief Operating Officer (COO)Vice President and Chief Financial Officer (CFO)TreasurerControllerCash ManagerCapital ExpendituresCredit ManagerFinancial PlanningTax Ma

11、nagerFinancial AccountingCost Accounting Data Processing McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-9The Financial ManagerTo create value, the financial manager should:1.Try to make smart investment decisions.2.Try to make smart financing decis

12、ions.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-10Cash flowfrom firm (C)The Firm and the Financial MarketsTaxes (D)FirmGovernmentFirm issues securities (A)Retained cash flows (F)Investsin assets(B)Dividends anddebt payments (E)Current assetsFix

13、ed assetsFinancialmarketsShort-term debtLong-term debtEquity sharesUltimately, the firm must be a cash generating activity.The cash flows from the firm must exceed the cash flows from the financial markets.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserv

14、ed.1-11Multiple choice1.Which of the following is not considered one of the basic questions of corporate finance? A)What long-lived assets should the firm invest? B)How much inventory should the firm hold? C)How can the firm raise cash for required capital expenditures? D)How should the short-term o

15、perating cash flows be managed? E)All of the above. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-122.The balance sheet is made up of what five key components? A)Fixed assets, current liabilities, long term debt, tangible current assets and shareh

16、olders equity B)Intangible fixed assets, current liabilities, long-term debt, net income and current assets C)Fixed assets, long-term debt, current assets, current liabilities and shareholders equity D)Current assets, fixed assets, long term debt, shareholders equity and retained earnings E)None of

17、the above. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-133. Capital structure is defined as the major financing of the firm. The capital structure is divided A)between debtors and creditors. B)creditors and shareholders. C)assets and liabilities

18、. D)All of the above. E)None of the above. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-144. In the managerial structure of the corporation the two officers and their responsibilities that report directly to the Chief Financial Officer (CFO) are

19、A)the credit manager who handles accounts receivable and the tax manager who minimizes tax payments. B)the personnel manager who manages salaries and compensation, and the production operations manager who manages facility operations. C)the treasurer who is responsible handling cash flow and making

20、financial decisions and the tax manager who minimizes tax payments. D)the controller who manages the accounting function and the treasurer who is responsible handling cash flow and making financial decisions. E)None of the above. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies

21、, Inc. All Rights Reserved.1-151.2 Corporate Securities as Contingent Claims on Total Firm ValueThe basic feature of a debt is that it is a promise by the borrowing firm to repay a fixed dollar amount of by a certain date.The shareholders claim on firm value is the residual amount that remains after

22、 the debtholders are paid.If the value of the firm is less than the amount promised to the debtholders, the shareholders get nothing.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-16Debt and Equity as Contingent Claims$F$FPayoff to debt holdersValu

23、e of the firm (X)Debt holders are promised $F. If the value of the firm is less than $F, they get the whatever the firm if worth. If the value of the firm is more than $F, debt holders get a maximum of $F. $FPayoff to shareholdersValue of the firm (X)If the value of the firm is less than $F, share h

24、olders get nothing. If the value of the firm is more than $F, share holders get everything above $F. Algebraically, the bondholders claim is: Min$F,$XAlgebraically, the shareholders claim is: Max0,$X $FMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1

25、-17$F$FCombined Payoffs to debt holders and shareholdersValue of the firm (X)Debt holders are promised $F. Payoff to debt holdersPayoff to shareholdersIf the value of the firm is less than $F, the shareholders claim is: Max0,$X $F = $0 and the debt holders claim is Min$F,$X = $X. The sum of these is

26、 = $XIf the value of the firm is more than $F, the shareholders claim is: Max0,$X $F = $X $F and the debt holders claim is: Min$F,$X = $F. The sum of these is = $XCombined Payoffs to Debt and EquityMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-18E

27、xample1 Suppose debtholders are promised $100,the firms value is $75, how much will the debtholders and stockholders get? In this case, the debtholders will get $75=min(75,100), the stockholders will get nothing! The stockholders claim= max(0,75-100)=0McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The

28、 McGraw-Hill Companies, Inc. All Rights Reserved.1-19Example 2If the firms value is $200,the firm has promised to pay the debtholder $100, how much will the debtholder and stockholders get?The debtholder will get $100=min(100,200), the stockholders will get $100=max0,(200-100).McGraw-Hill/IrwinCorpo

29、rate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-20Multiple choiceThe Simple Corporation has outstanding obligation to the Complex Corporation of $250. It is year-end and the total cash flow of Simple from all sources is $325. The contingent payoff to the debtholders and

30、the shareholders is A)$250; $325 B)$75; $250 C)$250; $75 D)$325; $250 E)None of the above. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-211.3 The Corporate FirmThe corporate form of business is the standard method for solving the problems encount

31、ered in raising large amounts of cash.However, businesses can take other forms.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-22Forms of Business OrganizationThe Sole Proprietorship(p10) A sole proprietorship is a business owned by one person.The P

32、artnership:any two or more persons can get together and form a partnership.General Partnership: all partners agree to provide some fraction of work and cash and to share the profits and lossesLimited Partnership: permit the liability of some of the partners to be limited to the amount of cash each h

33、as contributed to the partnershipMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-23The CorporationA corpotation is a legal entity, it can have a name and enjoy many of the legal power of natural persons( enter into contracts and may sue and be sued)

34、Advantages Liquidity and Marketability of Ownership: ownership can be readily transfererred Liability: limited liabilityContinuity of Existence: unlimited lifeDisadvantagesTax Considerations:double taxationMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserv

35、ed.1-24A Comparison of Partnershipand Corporations(p13) CorporationPartnershipLiquidityShares can easily be exchanged.Subject to substantial restrictions.Voting RightsUsually each share gets one voteGeneral Partner is in charge; limited partners may have some voting rights.TaxationDoublePartners pay

36、 taxes on distributions.Reinvestment and dividend payoutBroad latitudeAll net cash flow is distributed to partners.LiabilityLimited liabilityGeneral partners may have unlimited liability. Limited partners enjoy limited liability.Continuity Perpetual lifeLimited lifeMcGraw-Hill/IrwinCorporate Finance

37、, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-251.4 Goals of the Corporate FirmThe traditional answer is that the managers of the corporation are obliged to make efforts to maximize shareholder wealth.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All

38、 Rights Reserved.1-26The Set-of-Contracts PerspectiveTheorganisationInterest groupInvestor The publicSuppliers Government Media Consumers IndustrybodiesEmployees McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-27The Set-of-Contracts PerspectiveThe f

39、irm can be viewed as a set of contracts.One of these contracts is between shareholders and managers.The managers will usually act in the shareholders interests.The shareholders can devise contracts that align the incentives of the managers with the goals of the shareholders.The shareholders can moni

40、tor the managers behavior.This contracting and monitoring is costly.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-28Agency costsThe cost of resolving the conflicts of interest between managers and shareholders are called agency costs.These costs a

41、re defined as the sum of (1) the monitoring costs of the shareholders and (2) the costs of implementing control devices.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-29Managerial GoalsManagerial goals may be different from shareholder goalsWillims

42、on proposes the notion of Expensive preference: managers obtain value from certain kinds of expenses.According to Donaldson: Survival IndependenceThe basic financial objective of managers is the maximization of corporate wealth.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies,

43、Inc. All Rights Reserved.1-30Separation of Ownership and ControlBoard of DirectorsManagementAssetsDebtEquityShareholdersDebtholdersMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-31Do Shareholders ControlManagerial Behavior?Shareholders vote for the

44、 board of directors, who in turn hire the management team.Contracts can be carefully constructed to be incentive compatible.There is a market for managerial talentthis may provide market discipline to the managersthey can be replaced.If the managers fail to maximize share price, they may be replaced

45、 in a hostile takeover.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-321.5 Financial MarketsThe financial markets are composed of the money markets and the capital markets.Money markets are the markets for debt securities that will pay off in the

46、short term( usually less than one year).Capital markets are the markets for long-term debt (with a maturity at over one year) and for equity shares.McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-331.5 Financial MarketsThe financial markets can be c

47、lassified further as the primary market and the secondary markets.Primary MarketWhen a corporation issues securities, cash flows from investors to the firm.Usually an underwriter is involvedSecondary Markets Involve the sale of “used” securities from one investor to another . There are two kinds of

48、secondary markets: the auction markets and the dealer markets.The equity securities of most large U.S firms trade in organized auction markets such as the New York Stock Exchange (NYSE),the American Stock ExchangeMost debt securities are traded in dealer markets.Securities may be exchange traded or

49、trade over-the-counter in a dealer market. McGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.1-34Financial MarketsFirmsInvestorsSecondary MarketmoneysecuritiesSueBobStocks and BondsMoneyPrimary MarketMcGraw-Hill/IrwinCorporate Finance, 7/e 2005 The McGr

50、aw-Hill Companies, Inc. All Rights Reserved.1-35Exchange Trading of Listed StocksAuction markets are different from dealer markets in two ways:Trading in a given auction exchange takes place at a single site on the floor of the exchange.Transaction prices of shares are communicated almost immediatel