公司财务原理10e教学课件作者布雷利Chap009.ppt

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1、Chapter9PrinciplesofCorporateFinanceTenthEditionRiskandtheCostofCapitalSlidesbyMatthewWillMcGraw-Hill/IrwinCopyright©2011bytheMcGraw-HillCompanies,Inc.Allrightsreserved.TopicsCoveredCompanyandProjectCostsofCapitalMeasuringtheCostofEquityAnalyzingProjectRis

2、kCertaintyEquivalentsCompanyCostofCapitalAfirm’svaluecanbestatedasthesumofthevalueofitsvariousassetsCompanyCostofCapitalAcompany’scostofcapitalcanbecomparedtotheCAPMrequiredreturnRequiredreturnProjectBeta0.5CompanyCostofCapital3.80.20SMLIMPORTANTE,D,andVar

3、eallmarketvaluesofEquity,DebtandTotalFirmValueCompanyCostofCapitalWeightedAverageCostofCapitalWACCisthetraditionalviewofcapitalstructure,riskandreturn.CapitalStructure-themixofdebt&equitywithinacompanyExpandCAPMtoincludeCSr=rf+B(rm-rf)becomesrequity=rf+B(r

4、m-rf)CapitalStructureandEquityCostMeasuringBetasTheSMLshowstherelationshipbetweenreturnandriskCAPMusesBetaasaproxyforriskOthermethodscanbeemployedtodeterminetheslopeoftheSMLandthusBetaRegressionanalysiscanbeusedtofindBetaMeasuringBetasMeasuringBetasMeasuri

5、ngBetasEstimatedBetasBetaStability%INSAME%WITHINONERISKCLASS5CLASS5CLASSYEARSLATERYEARSLATER10(Highbetas)356991854816457134161439514424134031645221611(Lowbetas)4062Source:SharpeandCooper(1972)CompanyCostofCapitalCompanyCostofCapital(COC)isbasedontheaverage

6、betaoftheassetsTheaverageBetaoftheassetsisbasedonthe%offundsineachassetAssets=Debt+EquityCapitalStructure&COCExpectedreturn(%)BdebtBassetsBequityRrdebt=8Rassets=12.2Requity=15ExpectedReturnsandBetaspriortorefinancingCompanyCostofCapital(COC)isbasedontheave

7、ragebetaoftheassetsTheaverageBetaoftheassetsisbasedonthe%offundsineachassetExample1/3NewVenturesB=2.01/3ExpandexistingbusinessB=1.31/3PlantefficiencyB=0.6AVGBofassets=1.3CompanyCostofCapitalsimpleapproachCompanyCostofCapitalAssetBetasAssetBetasAllowingforP

8、ossibleBadOutcomesExampleProjectZwillproducejustonecashflow,forecastedat$1millionatyear1.Itisregardedasaveragerisk,suitablefordiscountingata10%companycostofcapital:AllowingforPossibleBadOutcomesExample-contin