公司理财本科班第一讲IntroductionToCorporateFinancenew

公司理财CorporateFinance授课教师：张群姿Email:qunzi.zhang@Thebigpicture…FinanceFourmajortopicsinFinance(StephenA.Ross)：EfficientMarket(FamaandFrench1972)ReturnandRisk(PortfolioTheory,Markowitz,1952;CAPM,Sharpe,1962)OptionPricingTheory(Black,ScholesandMerton1973)CorporateFinance(Modigliani–MillerTheorem,1958,AmericanEconomicReview)CourseDescriptionAnintroductorycourseprovidesanoverviewofcorporatefinance.Itemphasizesanintuitive,logicallyrigorousunderstandingofthetheoryandpracticeofcorporatefinance.Topicscoveredinclude:valuationtheory,corporateriskmanagement,capitalbudgeting,financingdecisionsandfinancialmarketefficiency,dividendpolicy,etc.RequirementsAttendance:Analert,inquisitivepresenceineachandeveryclassismandatory.Attendanceinseminarsessionsisstronglyadvisedbutnotrequired.ReadingsandAssignments:Studentswillbeexpectedtoreadtheassignedreadingsafterclass.Problemsetswillbeassignedthroughoutthecoursetoillustrateandreinforcetheconceptspresentedinclassaswellasinpreparationofthecasediscussionstofollow.Exam:100%*FinalExamMaterialsTextbook:

PrinciplesofCorporateFinance,

10thEdition,byRichardA.Brealey,StewartC.MyersandFranklinAllen.Otherrecommended(butnotrequired)Financetexts:CorporateFinance,7thedition,StephenRoss,JeffreyJaffe,andRandolphWesterfield,2005.Textbook中文版EnglishVersionMaterials(contd.)CoursePlanWeekPartofTextbookMajorTopics1Ch1Introduction2Ch2and3PresentValueandBondValuation3Ch3，4and5Bond,StockValuationandIntroductionofInvestmentRules4Ch5and6ApplicationofInvestmentRules5Ch7-9AssetPricinginCorporateFinance(WACC)6Ch10ProjectAnalysis7Ch13-15FinancingDecisions(IPO)8IPOinChina9Part5(Part7)PayoutpolicyandCapitalStructure10Part10MergersandAcquisitions11-12Part11InternationalCorporateManagement,ReviewProcessChapter1IntroductionCorporateFinance公司的三种组织形式单一业主制(IndividualProprietor)合伙制(Partnership)公司制(Corporate)单一业主与合伙制优势组成容易较简单的管理不用承担公司税劣势融资难无限责任有限的生命力公司制优势持续经营有限责任股权转让有利于融资劣势双重课税设立和维持的成本Chapter1:IntroductiontoCorporateFinanceCorporateinvestmentandfinancingdecisionsTheroleofthefinancialmanagerandtheopportunitycostofcapitalGoalsofthecorporationAgencyproblemsandcorporategovernance1-1CorporateInvestmentandFinancingDecisionsRealAssetsUsedtoproducegoodsandservicesFinancialAssets/SecuritiesFinancialclaimsonincomegeneratedbyfirm’srealassetsCapitalBudgeting/CapitalExpenditure(CAPEX)Decisiontoinvestintangibleorintangibleassets1-1CorporateInvestmentandFinancingDecisionsInvestmentDecisionPurchaseofrealassetsFinancingDecisionSaleoffinancialassetsCapitalStructureChoicebetweendebtandequityfinancing1-1CorporateInvestmentandFinancingDecisionsCapitalBudgetingExamplesTangibleAssetsi.e.Expandingstores，buyingnewmachineIntangibleAssetsi.e.Researchanddevelopmentfornewdrug,Patent,marketingteamTable1.1RecentInvestment/FinancingDecisionsCompanyRecentInvestmentDecisionsRecentFinancingDecisionsLVMH(France)LVMHacquirestheItalianJeweler,Bulgari,for$5billion.Paysfortheacquisitionwithamixtureofcashandshares.Procter&Gamble(U.S.)Spends$8billiononadvertising.Raises100billionJapaneseyenbyanissueof5-yearbonds.奇虎360Qihoo360TechnologyNSYE2015年2月4日，奇虎360公司斥巨资收购国际顶级域名360.com，收购价格为1700万美元，约合人民币1.1亿元。2015年2月完成了2亿美元的股票回购计划。AlibabaGroup2015年10月16日，阿里巴巴出资45亿美金收购优酷土豆。2014年5月完成了优酷土豆18.3%的股票收购。收购预计会于2016年第一季度完成。现金收购。1-1CorporateInvestmentandFinancingDecisionsWhatIsaCorporation?Legalentity,ownedbyshareholdersCanmakecontracts,carryonbusiness,borrow,lend,sue,andbesuedShareholdershavelimitedliabilityandcannotbeheldpersonallyresponsibleforcorporation’sdebtsFigure1.1CashFlowbetweenFinancialMarketsandFirm’sOperationsFinancialmanagerFirm'soperationsFinancialmarkets(1)Cashraisedfrominvestors(1)(2)Cashinvestedinfirm(2)(3)Cashgeneratedbyoperations(3)(4a)Cashreinvested(4a)(4b)Cashreturnedtoinvestors(4b)1-2TheFinancialGoaloftheCorporationStockholdersWantThreeThingsTomaximizecurrentwealthTotransformwealthintomostdesirabletimepatternofconsumptionTomanageriskcharacteristicsofchosenconsumptionplan1-2TheFinancialGoaloftheCorporationProfitMaximizationNotawell-definedfinancialobjectiveWhichyear’sprofits?Shareholderswillnotwelcomehighershort-termprofitsiflong-termprofitsaredamagedCompanymayincreasefutureprofitsbycuttingyear’sdividend,investingfreed-upcashinfirmNotinshareholders’bestinterestifcompanyearnslessthanopportunitycostofcapital1-2TheFinancialGoaloftheCorporationTheInvestmentTrade-offHurdleRate/CostofCapitalMinimumacceptablerateofreturnoninvestmentOpportunityCostofCapitalInvestinginaprojecteliminatesotheropportunitiestouseinvestedcashFigure1.2TheInvestmentTrade-off1-2TheFinancialGoaloftheCorporationShareholdersdesirewealthmaximizationManagershavemanyconstituencies,“stakeholders”“AgencyProblems”representtheconflictofinterestbetweenmanagementandowners1-2TheFinancialGoaloftheCorporationAgencyProblemsManagers,actingasagentsforstockholders,mayactintheirowninterestsratherthanmaximizingvalueStakeholderAnyonewithafinancialinterestinthefirmAgencyProblems—OwnershipversusManagement(Managersvs.stockholders)DifferenceinInformationProjectinvestmentStockreturnandriskDifferentObjectivesJobSecurityAnnualbonusvsdividends1-261-2TheFinancialGoaloftheCorporation1-2TheFinancialGoaloftheCorporationAgencycostsareincurredwhen:ManagersdonotattempttomaximizefirmvalueShareholdersincurcoststomonitormanagersandconstraintheiractions1-2TheFinancialGoaloftheCorporationToolstoEnsureManagementPaysAttentiontotheValueoftheFirmManager’sactionssubjecttothescrutinyofboardofdirectorsFinancialincentivesprovided,suchasstockoptionsJobsecurityPressuretobeacquiredOtherreferences（1stclassstoppedhere）Allen,Franklin,JamesMcAndrews,andPhilipStrahan.“E-Finance:AnIntroduction”WorkingPaper01-36,FinancialInstitutionsCenter,TheWhartonSchool,UniversityofPennsylvania.October2001.Core,J.E.,W.R.Guay,andD.F.Larcker.“ExecutiveEquityCompensationandIncentives:ASurvey,”FederalReserveBankofNewYorkEconomicPolicyReview,9(April2003),pp.27-50.Gompers,P.A.,J.L.Ishii,andA.Metrick.“CorporateGovernanceandEquityPrices”QuarterlyJournalofEconomics,118(1),February2003,pp.107-155.L.Guiso,L.Zingales,andP.Sapienza,“TrustingtheStockMarket,”JournalofFinance63(December2008),pp.2557–600.Mackie-Mason,J.K.,andR.H.Gordon.“HowMuchDoTaxesDiscourageIncorporation?”JournalofFinance,(June1997).Rappaport,A.“Newthinkingonhowtolinkexecutivepaywithperformance.”HarvardBusinessReview,March-April1999,91-104.Chapter2PresentValuesCorporateFinanceChapter2Howtocalculatepresentvalues

FuturevaluesandpresentvaluesPerpetuitiesandannuitiesGrowingperpetuitiesandannuitiesHowInterestIsPaidandQuoted2-1FutureValuesandpresentvaluesCalculatingFutureValuesFutureValueAmounttowhichinvestmentwillgrowafterearninginterestPresentValueValuetodayoffuturecashflow2-1FutureValuesandpresentvaluesFutureValueof$100=Example:FVWhatisthefuturevalueof$100ifinterestiscompoundedannuallyatarateof7%fortwoyears?Figure2.1FutureValueswithcompounding2-1FutureValuesandpresentvalues2-1FutureValuesandpresentvaluesDiscountfactor=DF=PVof$1Discountfactorscanbeusedtocomputepresentvalueofanycashflow

2-1FutureValuesandpresentvaluesGivenanyvariablesintheequation,onecansolvefortheremainingvariablePriorexamplecanbereversedFigure2.2PresentValueswithcompounding2-1FutureValuesandpresentvaluesValuinganOfficeBuildingStep1:ForecastCashFlowsCostofbuilding=C0=$700,000Salepriceinyear1=C1=$800,000Step2:EstimateOpportunityCostofCapitalIfequallyriskyinvestmentsinthecapitalmarketofferareturnof7%,thencostofcapital=r=7%2-1FutureValuesandpresentvaluesValuinganOfficeBuildingStep3:DiscountfuturecashflowsStep4:GoaheadifPVofpayoffexceedsinvestment2-1FutureValuesandpresentvaluesNetPresentValue2-1FutureValuesandpresentvaluesRiskandPresentValueHigherriskprojectsrequireahigherrateofreturnHigherrequiredratesofreturncauselowerPVs2-1FutureValuesandpresentvaluesRiskandNetPresentValue2-1FutureValuesandpresentvaluesNetPresentValueRuleAcceptinvestmentsthathavepositivenetpresentvalueUsingtheoriginalexample:Shouldoneaccepttheprojectgivena10%expectedreturn?2-1FutureValuesandpresentvaluesRateofReturnRuleAcceptinvestmentsthatofferratesofreturninexcessoftheiropportunitycostofcapitalIntheprojectlistedbelow,theopportunitycostofcapitalis12%.Istheprojectawiseinvestment?2-1FutureValuesandpresentvaluesMultipleCashFlowsDiscountedCashFlow(DCF)formula:Figure2.5NetPresentValues2-2PerpetuitiesandannuitiesPerpetuityFinancialconceptinwhichcashflowistheoreticallyreceivedforever2-2PerpetuitiesandannuitiesPerpetuity2-2PerpetuitiesandannuitiesPresentValueofPerpetuitiesWhatisthepresentvalueof$1billioneveryyear,foreternity,iftheperpetualdiscountrateis10%?2-2PerpetuitiesandannuitiesPresentValueofPerpetuitiesWhatiftheinvestmentdoesnotstartmakingmoneyfor3years?2-2PerpetuitiesandannuitiesAnnuityAssetthatpaysfixedsumeachyearforspecifiednumberofyearsPerpetuity(firstpaymentinyear1)Perpetuity(firstpaymentinyeart+1)Annuityfromyear1toyeartAssetYearofPayment12…..tt+1PresentValue2-2PerpetuitiesandannuitiesExample:TiburonAutosofferspaymentsof$5,000peryear,attheendofeachyearfor5years.Ifinterestratesare7%,peryear,whatisthecostofthecar?2-2Perpetuitiesandannuities2-2PerpetuitiesandannuitiesAnnuityExample:Thestatelotteryadvertisesajackpotprizeof$365million,paidin30yearlyinstallmentsof$12.167million,attheendofeachyear.Findthetruevalueofthelotteryprizeifinterestratesare6%.2-2PerpetuitiesandannuitiesFutureValueofanAnnuity2-2PerpetuitiesandannuitiesFutureValueofanAnnuityWhatisthefuturevalueof$20,000paidattheendofeachofthefollowing5years,assuminginvestmentreturnsof8%peryear?2-3GrowingperpetuitiesandannuitiesConstantGrowthPerpetuityThisformulacanbeusedtovalueaperpetuityatanypointintimeg=theannualgrowthrateofthecashflow2-3GrowingperpetuitiesandannuitiesConstantGrowthPerpetuityWhatisthepresentvalueof$1billionpaidattheendofeveryyearinperpetuity,assumingarateofreturnof10%andconstantgrowthrateof4%?2-3GrowingperpetuitiesandannuitiesGrowingAnnuitiesGolfclubmembershipis$5,000for1year,or$12,750forthreeyears.Findthebetterdealgivenpaymentdueattheendoftheyearand6%expectedannualpriceincrease,discountrate10%.

2-4HowInterestisPaidandQuotedEffectiveAnnualInterestRate(EAR)InterestrateannualizedusingcompoundinterestAnnualPercentageRate(APR)Interestrateannualizedusingsimpleinterest2-4HowInterestisPaidandoutlaidGivenamonthlyrateof1%,whatisthe(EAR)?Whatisthe(APR)?Chapter3ValuingbondsCorporateFinanceChapter3ValuingBonds

Usingpresent-valueformulastovaluebondsHowbondpricesvarywithinterestratesExplainingthetermstructureRealandnominalratesofinterestCorporatebondsandtheriskofdefault3-1UsingthepresentvalueformulatovaluebondsExampleTodayisOctober1,2010;whatisthevalueofthefollowingbond?AnIBMbondpays$115everySeptember30forfiveyears.InSeptember2015itpaysanadditional$1,000andretiresthebond.ThebondisratedAAA(WSJAAAYTMis7.5%).3-1UsingthepresentvalueformulatovaluebondsExample:FranceInOctober2011youpurchase100eurosofbondsinFrancewhichpaya5%couponeveryyear.Ifthebondmaturesin2016andtheYTMis2.4%,whatisthevalueofthebond?3-1UsingthepresentvalueformulatovaluebondsAnotherExample:JapanInJuly2010youpurchase200yenofbondsinJapanwhichpayan8%couponeveryyear.Ifthebondmaturesin2015andtheYTMis4.5%,whatisthevalueofthebond?3-1UsingthepresentvalueformulatovaluebondsExample:USAInFebruary2012youpurchaseathree-yearU.S.governmentbond.Thebondhasanannualcouponrateof11.25%,paidsemiannually.Ifinvestorsdemanda0.085%semiannualreturn,whatisthepriceofthebond?3-1Usingthepresentvalueformulatovaluebonds3-2howbondpricesvarywithinterestratesExample,Continued:USATakethesamethree-yearU.S.governmentbond.Ifinvestorsdemanda4.0%semiannualreturn,whatisthenewpriceofthebond?Figure3.1Interestrateon10-yeartreasuriesYield,%YearInterestrate,%3-2howbondpricesvarywithinterestrates

BondpriceFigure3.2MaturityandPricesWheninterestrate=11.25%coupon,bothbondssellforfacevalueBondpriceInterestrate,%3-2howbondpricesvarywithinterestrates3-2DurationcalculationYearPaymentCtPV(Ct)at4.0%FractionofTotalValue[PV(Ct)/V]Year×fractionoftotalvalue[t×PV(Ct)/PV]1$90$86.540.06660.066629083.210.06400.128039080.010.06150.184649076.930.05920.236759073.970.05690.284569071.130.05470.328371090828.310.63714.4598PV=$1300.10Total=duration=5.603-2Duration&BondPricesInterestrate,%Bondprice,%3-3

termstructureofInterestRatesShort-andlong-termratesarenotalwaysparallelSeptember1992–April2000:U.S.short-termratesrosesharplywhilelong-termratesdeclinedSummarize公司理财CorporateFinance授课教师：张群姿Email:qunzi.zhang@CoursePlanWeekPartofTextbookMajorTopics1Ch1Introduction2Ch2and3PresentValueandBondValuation3Ch3，4and5Bond,StockValuationandIntroductionofInvestmentRules4Ch5and6ApplicationofInvestmentRules(EVA&WACC)5Ch7-9AssetPricinginCorporateFinance6Ch10ProjectAnalysis7Ch13-15FinancingDecisions(IPO)8IPOinChina9Part5(Part7)PayoutpolicyandCapitalStructure10Part10MergersandAcquisitions11-12Part11InternationalCorporateManagement,ReviewProcess第三章债券债券定价（现值公式）债券价格和利息的关系解释利率的期限结构实际利率和名义利率公司债券和违约风险3.利率的期限结构

(Termstructureofinterestrates)预期理论（ExpectationsTheory）市场分割理论（MarketSegmentationTheory）YTM(r)Year19811987（正常年份）1976151020