14负债资本结构

Ex1Ex1-operatingWhichofthefollowingwouldbeimpliedbyadecreaseinacompany'soperatinggearingratio?ThecompanyislessThecompanyismoreThecompanyhasalowerproportionofcoststhatareThecompanyhasprofitswhicharelesssensitivetochangesinsalesvolumeEx1Ex1-operating Operatinggearing=fixedcostsdividedbyvariablecosts,soadecreaseinthegearingratioimpliesalowerproportionoffixedConsiderthefollowingHigherLowerFixedOperatinggearing Ex1Ex1-operatingSupposesalesvolume,andhencevariablecosts,fallby20%Theprofitswillbeaffectedasfollows.FixedWiththelowergearingratio,profitsarelessaffectedbythechangeinvolume.Ex2Ex2-operatingAsummaryofHMCo'srecentstatementofprofitorlossisgivenCostofGrossProfitbeforeinterestandProfitafterinterestand70%ofcostofsalesand10%ofexpensesarevariableEx2Ex2-operatingWhatisHMCo'soperationalEx2Ex2-operatingAnswerOperationalgearing=Contribution/Profitbeforeinterestandtax. =Revenue–variablecost=10,123–(70%×7,222)–(10%×999)=Operationalgearing=4,967.70/1,902=Ifacompanythatcurrentlypaysitsworkforceonapieceratesystemweretoautomateitsproductionline,whichofthefollowingresponseswoulditexpectofoperatinggearing?RemaintheIncreaseordecreasedependingonthenatureoftheproductionFinancialFinancialFinancialgearing=Priorchargecapital/EquityPriorchargecapitaliscapitalwhichhasarighttothereceiptofinterestorofpreferreddividendsinprecedencetoanyclaimondistributableearningsonthepartoftheordinaryshareholders.Onwindingup,theclaimsofholdersofpriorchargealsorankbeforethoseofordinaryshareholders.ThefollowingareextractsfromthestatementoffinancialpositionofaBankPreferenceTotalequityand Theordinaryshareshaveanominalvalueof50centspershareandaretradingat$500pershare.Thepreferenceshareshaveanominalvalueof$100pershareandaretradingat80centspershare.Thebondshaveanominalvalueof$100andaretradingat$105perWhatisthemarketvaluebasedgearingofthecompany,definedaspriorchargecapital/equity?150%130%118%73%Akeyproblemofdebtfinanceisthatifthereisadownturninbusinesstherewillbeadramaticcutinthefundsavailabletopayadividendbecauseoftheneedtopayinterestfirst.ThisisillustratedBadtimesCo’slatestforecastfinancialdataforthecurrentyearisasLastProfitsbeforeinterestandProfitsafterinterestandPreferenceDividends(assumingthe%ofearningsispaidComparethe%changeinPBITtothe%changeindividendsandexplainthedifference.LastProfitsbeforeinterestand%change=6000/12000×100=Dividendsfallby1377/2000×100=DividendsfallbymorethanPBITbecauseinterestandpreferenceshareshavetobepaid–thisiscalledfinancialrisk.Whosuffersfinancialriskasfinancialgearingincreases,andLendersbecausetheyarelesslikelytobeLendersbecausetherearefewerassetstoofferasShareholdersastheirreturnsareShareholdersastheirdividendsbecomemoreAdvantagesofdebtDebtisacheapsourceofAndanyprofitleftafterpayingtheinterestbelongstotheshareholders(discussedinchapters15&16).Theuseofdebtisasignalofconfidenceinthecompany’scashflowsThiscanbetrue,butbankswouldstillexpecttoseesomeequitybeinginvested.TheuseofdebtisadisciplineonCarefulcashflowmanagementisneededeggoodmanagementofworkingcapital.TheuseofdebtavoidsdilutionofearningsperAmotiveintherealworldbutnotmaynotbevalidifhigherdebtresultsinalowerP/Eratio.Gearing-DisadvantagesofdebtDebtcreateshighervariabilityindividendsiehigher‘financialDebtcreateshigherdefaultriskswhichcanleadtofinancialdistresscostssuchaslowersalesorhighersuppliercosts(thisisexploredinchapter16).GearingGearing-FactortoPracticalLifeAnew,growingbusinesswillfinditdifficulttoforecastcashflowswithanycertaintysohighlevelsofgearingareunwise.Iffixedcostsarehighthencontribution(beforefixedcosts)willbehighrelativetoprofits(afterfixedcosts).Highfixedcostsmeancashflowisvolatile,sohighgearingisnotsensible.StabilityofIfoperatinginahighlydynamicbusinessenvironmentthenhighgearingisnotsensible.Ifunabletooffersecuritythendebtwillbedifficultandexpensivetoobtain.Whichofthefollowingismostlikelytoresultinacompany'sfinancialgearingbeinghigh?LowtaxableLowtaxInexpensiveshareissueIntangibleassetsbeingalowproportionoftotalHowHowrisksvarybyDifferentsectorshavedifferentfinancialstructures,andcostSomecompanies,byvirtueoftheirmainactivity,relyheavilyonshortorlong-termloancapitalwhereasothershavelowerstructuralgearing.Othershaveevenmorecomplexfinancialstructures.Thesefinancialstructuresgiverisetodifferentcostsofcapitalanddifferentialvulnerabilitiestosuchexternalfactorsasmonetarypressure.HowHowrisksvarybySowhereasatraditionalmanufacturingcompanymighthaveverylittledebt,acivilengineeringbusinessundertakingindividuallargeprojectsmighttakeonlargeamountsofmedium-termdebttofinancetheproject.Thismeansthatrisksaregreaterinsuchabusinessbecauseofthefinancialgearingwhichislowerinthetraditionalcompanyfundedmainlybyshareholders’equityorretainedsurpluses.Banksrelyonarangeoffundingsourcesandbecomevulnerabletolosseswhenthesebecomedifficultorthepriceofgainingthesefundsrisesforanyreason.HowHowrisksvarybySomecompanieshavedifferentcoststructureswhichmakethemmoreriskyindifferenteconomiccircumstances.Companieswithhighoperationalgearing,suchasthosehavingveryhighfixedcostscomparedtovariablecosts,havemorevolatilereturnssimplybecauseofthestructureoftheircostbase.GoodtimesCoisalistedcompanythatplanstospend$5monexpandingitsexistingbusiness.Ithasbeensuggestedthatthemoneycouldberaisedbyissuing8%bondsredeemableintenyears’time.CurrentfinancialinformationonGoodtimesCoisasIncomestatementinformationforthelastProfitbeforeinterestandProfitbeforeProfitforthe StatementoffinancialpositionforthelastCurrentTotalEquityandOrdinaryshares,parvalueRetainedTotal10%6%preferenceshares,parvalueTotalnon-currentCurrent Totalequityand Theexpansionofbusinessisexpectedtoincreaseprofitbeforeinterestandtaxby10%inthefirstyear.Anordinarydividendof17centspersharehasjustbeenpaidanddividendsareexpectedtoincreaseby4%peryearfortheforeseeablefuture.GoodtimesCohasnooverdraftandpaystaxonprofitsatanannualrateof30%.AveragesectorFinancialgearing:45%(Non-currentliability/equity)Interestcoverageratio:12timesEvaluateandcommentontheeffects,afteroneyear,ofthebondissueandtheexpansionofbusinessonthefollowingratios:InterestcoverageFinancialEarningsperInterestcoverageCurrentinterestcoverageratio=3,500/250=14Increasedprofitbeforeinterestandtax=3,500,000×1.1=$3.85mIncreasedinterestpayment=$250,000+($5m×8%)=$650,000Interestcoverageratioafteroneyear=3.85/0.65=5.9timesThecurrentinterestcoverageofGoodtimesCoishigherthanthesectoraverageof12timesandcanbeconsideredquitesafe.However,afterthenewissueofbonds,theinterestcoverageratiofallstolessthanhalfofthesectoraverageandcouldindicatethatthecompanymayfinditdifficulttomeettheinterestFinancialFinancialgearing Non-currentCurrentfinancialgearingatbookvalues=3,750/13,750×100=27.3%Ordinarydividendafteroneyear=$0.17×2.5m×1.04=$442,000Preferencedividend=1,250×0.06=$75,000 Profitbeforeinterestand Profitbefore Incometax Profitforthe Preference Ordinary Retained Financialgearingafteroneyear=(3,750+5,000)/(13,750+1,723)=ThecurrentfinancialgearingofGoodtimesCoisaround40%((45–27.3)/45)lessthanthesectoraverage.Afterthebondissue,itispredictedtobe26%((56.6–45)/45)morethanthesectoraverage.Thisincreasein,andlevelof,financialgearingmaybeofconcerntoinvestorsandthestockmarket.However,ifthecompanycontinuestogrowat10%perannum,financialgearingwillgraduallyreduceastheproportionofdebttoequityfalls.EarningspershareEPS=ProfitattributabletoordinaryshareholdersNumberofordinarysharesCurrentEPS=2,275-75=0.88=88centsperEPSafteroneyear=2,240-75=0.866=86.6centsperAnydecreaseinEPStendstobedislikedbyinvestorsasitisseenasakeyratio.However,thisdecreaseisrelativelysmallandtheexpectedfuturegrowthinearningsshouldquicklyreverseit.Inconclusion,theissueofnewdebtislikelytohaveanegativeimpactonthecompany'sfinancialpositionatleastintheshort-FinanceforFundingFundingThehighfailurerateforsmallcompaniesmeansthattheyfaceparticularproblemsinraisingexternalfinanceandhavefewshareholderswhichmakesitdifficulttoraiseinternalfinance;thisissometimesreferredtoasthefundinggap.Evenmedium-sizedcompanieswillsometimesfindthattheycannotobtainmoredebtfinance,dueinadequatesecurity(intheformofassets).Thisisaparticularproblemformedium-termprojects(egnewadvertisingcampaign)whichoftendonothavethesecurityofferedbylong-terminvestmentsinland&buildingscreate.Thedifficultyinobtainingmedium-termfinancingiscalledthematuritySelectthecorrecttermtocompletethebelowSmallandmedium-sizedentities(SME)haverestrictedaccesstocapitalmarkets.ThedifferencebetweenthefinancerequiredtooperateanSMEandtheamountobtainedisknownasthe:ForecastedMaturityFundingAssetFundingThedifferencebetweenthefinancerequiredtooperateandSMEandtheamountobtainedisthefundinggap.ThefollowingstatementsrelatetosmallandmediumsizedenterprisesMediumtermloansarehardertoobtainthanlongertermloansforSMEsarepronetofundingArethestatementstrueorStatement1istrueandstatement2isStatement2istrueandstatement1isBothstatementsareBothstatementsareSourcesSourcesoffinanceforOwnerOverdraftBankTradeEquityBusinessangelVentureSupplychainCrowdfunding/peertopeerSupplySupplychainfinanceThemostwidelyusedformofSCFisreversefactoring.Ratherconfusingly,reversefactoringissometimessimplyreferredtoasReversefactoringisamethodoffinancingbysellinginvoicesatasmalldiscount(interestrate)inordertoobtainthecashinadvanceoftheinvoiceduedate.Thisisachievedthroughanintermediaryprovidersuchasabank,whoprovidesearlypaymenttothesupplierinexchangeforthediscount,andinturnreceiveslaterpaymentfromthebuyer.Thisisatechnology-basedprocesswhichlinksthebuyer,thesellerandthefundprovider.Theprocessworksasfollows.SupplychainfinanceThefollowingstatementsrelatetosupp