第五次作业 1. Divide公司是一个完全以股权融资的公司,其总市值为10000万元。该公司持有1000 万元的现金等价物和9000万元的其它资产。公司发行在外的普通股共计100万份,每股市 价为100元。Dⅳvido公司决定发行2000万元的债券,并且回购价值2000万元的股票 a_.在一个满足M&M定理、无摩擦的市场环境中,债券的发行对股票价格和股东财富有什 么样的影响,为什么? b.假设 Divides息税前收益(EBIT)有可能是2000万元,1200万元,或400万元,并 且这三种结果发生的可能性相同。求在无税收的环境中,该资本结构调整行为对每股盈 余的概率分布的影响。为什么股权风险变大不一定会影响股东的财富状况? 2.英国 Comfort shoe公司决定将其 Tango dance shoes分部分离出去,使其成为美国的一 个独立公司。 Tango dance shoes分部资产的经营风险与 Comfort公司整体的经营风险相同 Comfort公司的资本结构为40%的债务和60%的股权(均按市值计算),并且管理层认为这 结构是最优的。对 Comfort公司资产的应得收益率( Required return)为每年16%,而公 司(包括分部)现在须支付的债务利息为每年10%。 预计 Tango shoes分部的年销售收入可能会保持去年的水平,即1000万元。可变成本为 销售的55%。年折旧是100万元,并且折旧费用正好与每年的新增投资额相等。公司税率 a.在无负债形式下, Tango shoes分部的价值应该是多少? b.如果 Tango shoes分部分连同500万元的债务一起分离出去,那么它的价值又是多少? c.股东对 Tango shoes分部的应得收益率( Required return)是多少? d.证明新公司股东权益的市场价值相对于股东得到的收益是合理的。 3.在问题7的基础上,假设 Foxtrot Dance Shoe公司制造传统样式的舞鞋,是 Tango Dance Shoes公司的竞争者。 Foxtrot公司与 Tango公司有相似的风险和特征,区别只在于前者是 完全无负债的。由于担心 Tango dance shoes公司为了维持自己的市场地位可能会收购 Foxtrot公司, Foxtrot公司决定进行债务融资以回购其股票。 a如果现在发行在外的股票为500000股,那么 Foxtrot公司股票的每股价值是多少? b.如果 Foxtrot公司打算按照公司价值的40%进行债务融资,则它能够回购多少股份,以 及回购价格将是多少? c. Foxtrot公司是否应该借入更多的资金? 4. A leveraged buyout(LBO) is the acquisition by a small group of equity investors of a public or private company financed primarily with debt. The equityholders service the heavy interest and principal payments with cash from operations and/or asset sales. The shareholders generally hope
第五次作业 1．Divido 公司是一个完全以股权融资的公司，其总市值为 10000 万元。该公司持有 1000 万元的现金等价物和 9000 万元的其它资产。公司发行在外的普通股共计 100 万份，每股市 价为 100 元。 Divido 公司决定发行 2000 万元的债券，并且回购价值 2000 万元的股票。 a. 在一个满足 M&M 定理、无摩擦的市场环境中，债券的发行对股票价格和股东财富有什 么样的影响，为什么？ b. 假设 Divido's 息税前收益（ EBIT）有可能是 2000 万元， 1200 万元，或 400 万元，并 且这三种结果发生的可能性相同。求在无税收的环境中，该资本结构调整行为对每股盈 余的概率分布的影响 。为什么股权风险变大不一定会影响股东的财富状况？ 2．英国 Comfort Shoe 公司决定将其 Tango Dance Shoes 分部分离出去，使其成为美国的一 个独立公司。Tango Dance Shoes 分部资产的经营风险与 Comfort 公司整体的经营风险相同。 Comfort 公司的资本结构为 40%的债务和 60%的股权（均按市值计算），并且管理层认为这 一结构是最优的。对 Comfort 公司资产的应得收益率（Required return）为每年 16%，而公 司（包括分部）现在须支付的债务利息为每年 10% 。 预计 Tango Shoes 分部的年销售收入可能会保持去年的水平，即 1000 万元。可变成本为 销售的 55% 。年折旧是 100 万元，并且折旧费用正好与每年的新增投资额相等。公司税率 为 40% 。 a. 在无负债形式下， Tango Shoes 分部的价值应该是多少？ b. 如果 Tango Shoes 分部分连同 500 万元的债务一起分离出去，那么它的价值又是多少？ c. 股东对 Tango Shoes 分部的应得收益率（Required return）是多少? d. 证明新公司股东权益的市场价值相对于股东得到的收益是合理的。 3．在问题 7 的基础上，假设 Foxtrot Dance Shoe 公司制造传统样式的舞鞋，是 Tango Dance Shoes 公司的竞争者。 Foxtrot 公司与 Tango 公司有相似的风险和特征，区别只在于前者是 完全无负债的。由于担心 Tango Dance Shoes 公司为了维持自己的市场地位可能会收购 Foxtrot 公司， Foxtrot 公司决定进行债务融资以回购其股票。 a. 如果现在发行在外的股票为 500,000 股，那么 Foxtrot 公司股票的每股价值是多少? b. 如果 Foxtrot 公司打算按照公司价值的 40％进行债务融资，则它能够回购多少股份，以 及回购价格将是多少？ c. Foxtrot 公司是否应该借入更多的资金? 4．A leveraged buyout (LBO) is the acquisition by a small group of equity investors of a public or private company financed primarily with debt. The equityholders service the heavy interest and principal payments with cash from operations and/or asset sales. The shareholders generally hope
to reverse the LBo within three to seven years by way of a public offering or sale of the company to another firm. a buyout is therefore likely to be successful only if the firm generates enough cash to serve the debt in the early years, and if the company is attractive to other buyers as the buyout matures In a leveraged buyout, the equity investors are expected to pay off outstanding principal according to a specific timetable. The owners know that the firm's debt-equity ratio will fall and can forecast the dollar amount of debt needed to finance future operations. Under these circumstances,the adjusted - present-value (APV) approach is more practical than the weighted-average-cost-of-capital(WACC) approach because the capital structure is changing The APv method can be used to value companied as well as projects. Applied in this way, the maximum value of a levered firm(Vi)is its value as an all-equity entity(Vu) plus the discounted value of the interest tax shields from the debt its assets will support (PVTS). This relation can be stated as V =l,+Pvts UCF+>IcBB, 1+)台(1+r In the second part of this equation, UCFt is the unlevered cash flow from operations for year t iscounting these cash flows by the required return on assets, ro, yields the all-equity value of the company. Bt-1 represents the debt balance remaining at the end of year(t-1). Because interest in a given year is based on the debt balance remaining at the end of the previous year, the interest paid in year t is rBBt-1. The numerator of the second term, TcrBBi-1, is therefore the tax shield for year t We discount this series of annual tax shields using the rate at which the firm borrows, rB The following RR Nabisco transaction, the largest LBO in history, gives an example. The RJR Nabisco Buyout. In the summer of 1998, the price of RJR stock was hovering around $55 a share. The firm had s5 billion of debt The firms ceo. acting in concert with some other senior management of the firm, announced a bid of $75 per share to take the firm private in a management buyout. Within days of managements offer, Kohlberg, Kravis and Roberts(KKR) entered the fray with a $90 bid of their own. By the end of November, KKR emerged from the ensuing bidding process with an offer of $109 a share, or $25 billion total If succeeded, KKR planned to sell several of RUR's food divisions and operate the remaining parts of the firm more efficiently. Table 4.1 presents KKR's projected cash flows for RR under the buyout, adjusting for operational efficiencies and including planned asset sal TABLE 4.1 RJR Operating Cash Flows(in Millions except for tax rate) 1989 1990 1992 1993 Operating income $2.620 3410 $3.645 3950 $4.310 Tax rate on operating income 34% 34% Depreciation Capital expenditures 522 512 538 Change in working capital Proceeds from asset sales 1.805 With respect to financial strategy, KKR planned a significant increase in leverage with accompanying tax benefits. Specifically, KKR issued almost $24 billion of new debt to complete
to reverse the LBO within three to seven years by way of a public offering or sale of the company to another firm. A buyout is therefore likely to be successful only if the firm generates enough cash to serve the debt in the early years, and if the company is attractive to other buyers as the buyout matures. In a leveraged buyout, the equity investors are expected to pay off outstanding principal according to a specific timetable. The owners know that the firm’s debt-equity ratio will fall and can forecast the dollar amount of debt needed to finance future operations. Under these circumstances, the adjusted-present-value (APV) approach is more practical than the weighted-average-cost-of-capital (WACC) approach because the capital structure is changing. The APV method can be used to value companied as well as projects. Applied in this way, the maximum value of a levered firm (VL) is its value as an all-equity entity (VU) plus the discounted value of the interest tax shields from the debt its assets will support (PVTS). This relation can be stated as ( ) ( ) = = − + + + = = + 1 1 1 t 1 0 t 1 t B C B t t t L U r T r B r UCF V V PVTS In the second part of this equation, UCFt is the unlevered cash flow from operations for year t. Discounting these cash flows by the required return on assets, r0, yields the all-equity value of the company. Bt-1 represents the debt balance remaining at the end of year(t-1). Because interest in a given year is based on the debt balance remaining at the end of the previous year, the interest paid in year t is rBBt-1. The numerator of the second term, TCrBBt-1, is therefore the tax shield for year t. We discount this series of annual tax shields using the rate at which the firm borrows, rB. The following RJR Nabisco transaction, the largest LBO in history, gives an example. The RJR Nabisco Buyout. In the summer of 1998, the price of RJR stock was hovering around $55 a share. The firm had $5 billion of debt. The firm’s CEO, acting in concert with some other senior management of the firm, announced a bid of $75 per share to take the firm private in a management buyout. Within days of management’s offer, Kohlberg, Kravis and Roberts(KKR) entered the fray with a $90 bid of their own. By the end of November, KKR emerged from the ensuing bidding process with an offer of $109 a share, or $25 billion total. If succeeded, KKR planned to sell several of RJR’s food divisions and operate the remaining parts of the firm more efficiently. Table 4.1 presents KKR’s projected cash flows for RJR under the buyout, adjusting for operational efficiencies and including planned asset sales. TABLE 4.1 RJR Operating Cash Flows (in $millions except for tax rate) With respect to financial strategy, KKR planned a significant increase in leverage with accompanying tax benefits. Specifically, KKR issued almost $24 billion of new debt to complete 1989 1990 1991 1992 1993 Operating income $2,620 $3,410 $3,645 $3,950 $4,310 Tax rate on operating income 34% 34% 34% 34% 34% Depreciation 449 475 475 475 475 Capital expenditures 522 512 525 538 551 Change in working capital 203 275 -200 -225 -250 Proceeds from asset sales 3,545 1,805
the buyout, raising annual interest costs to more than $3 billion. Table 4.2 presents the projected interest expense and tax shields for the transaction TABLE 4.2 Projected Interest Expenses and Tax Shields(in Millions) 1989 1990 1993 Interest $3,384 3.004 $3.1ll 3.294 3483 Other relevant financial data needed for the valuation are presented in Table 4.3 TaBLE 4.3 Other relevant data needed for the valuation of rjr KKRs required return on assets ro Pretax average cost of debt rB 13.5 Assumed debt to equity ratio for RJR after 1993 Assumed constant growth rate of UCF from RR after 1993 Number of shares outstandin 229 million Now, with the data given in the Table4 1-43 as well as your wise mind, What's your opinion about KKR's bidding offer of $109 a share for RR? Is it a fair one?
the buyout, raising annual interest costs to more than $3 billion. Table 4.2 presents the projected interest expense and tax shields for the transaction. TABLE 4.2 Projected Interest Expenses and Tax Shields (in $millions) 1989 1990 1991 1992 1993 Interest expenses $3,384 $3,004 $3,111 $3,294 $3,483 Other relevant financial data needed for the valuation are presented in Table 4.3. TABLE 4.3 Other relevant data needed for the valuation of RJR KKR’s required return on assets r0 14% Pretax average cost of debt rB 13.5% Assumed debt to equity ratio for RJR after 1993 1:3 Assumed constant growth rate of UCF from RJR after 1993 3% Number of shares outstanding 229 million Now, with the data given in the Table4.1-4.3 as well as your wise mind, What’s your opinion about KKR’s bidding offer of $109 a share for RJR? Is it a fair one?
