资本资产定价模型WACC.ppt

WACCandDebtPolicy OptimalCapitalStructure M M DebtPolicyDoesn tMatter Modigliani Miller PropositionI Whentherearenotaxesandcapitalmarketsareperfect themarketvalueofacompanydoesnotdependonitscapitalstructure TheValueofthefirmdoesnotchangewithdebt VL VU ReturnonAssets wacc NoTaxes Note rA WACC withnotaxes M MPropositionII V D E TheseshouldbeMarketvalues Thecostofequitycapitalincreaseswithfinancialleverage duetotheincreaseinRisk r DE rD rE M MPropositionII rA WACC Riskfreedebt Riskydebt LeverageandReturns ImpactonBeta LeverageandReturns ImpactonBeta IftheBetaofDebtisassumedtobeZeroBD 0TheBetaoftheLeveredFirmisEqualtotheBetaoftheUnleveredFirm orAssetBeta timesOneplustheDebt to EquityRatio Note Equitybetasareleveredbetasandassetbetasareunleveredbetas L EandU A WACC notaxes WACCisthetraditionalviewofcapitalstructure riskandreturn CapitalStructurewithtaxes PVofTaxShield assumeperpetuity DxrDxTcrD DxTc FirmValue ValueofAllEquityFirm PVTaxShield VL VU TCxD MMPropositionIwithCorporateTaxes MMProp IwithTaxes Debt MarketValueofTheFirm Valueofunleveredfirm PVofinteresttaxshields Valueofleveredfirm Optimalamountofdebt MMwithCorporateTaxes MMPropositionIIwithCorporateTaxes r0 thereturnontheallequityfinancedfirm theunleveredfirmorthereturnontheassetsofthefirm DebtandTaxes ImpactonBeta IftheBetaofDebtisassumedtobeZeroBD 0 Remember Listheequitybetaforafirmwithleverage and UisthebetaforthefirmwithNOdebt r DV rD rE WACC MMwithTaxes WACC r0 FinancialDistress CostsofFinancialDistress Costsarisingfrombankruptcyordistortedbusinessdecisionsbeforebankruptcy MarketValue ValueifallEquityFinanced PVTaxShield PVCostsofFinancialDistress FinancialDistress Debt MarketValueofTheFirm Valueofunleveredfirm PVofinteresttaxshields Costsoffinancialdistress Valueofleveredfirm Optimalamountofdebt Maximumvalueoffirm WACCwithTaxes Important TheWACCFormula WeightedAverageCostofCapital withcostsoffinancialdistress r DV rD rE WACC Optimalamountofdebt CostsofDebt FinancialDistressCostsPersonalTaxDisadvantageofDebtAgencyCostsInformationCosts orBenefits ofDebtThePeckingOrderTheory