财务管理.docx

1、财务管理Chapter 4Financial Planning and ForecastingDefinitions about budgeting and percent of sales methodto predict the future assets/liabilities according to the relationship between the present sales revenue and assets/liabilities . DFN (Discretionary financing needs) / AFN (Additional funds needed).

2、1. Budget (put things in Perspective) is a quantitative expression of a plan of action that helps managers coordinate and implement the plan .(1)comprehensive budget (全面预算体系) : a set of financial statement and other schedules showing the expected results for a future period .(2)the comprehensive bud

3、get is a tool to make planning efficient and also provides a means for monitoring whether activities are going according to plan .It should include : (1)financial budgets: pro forma balance sheet ;cash budget;pro forma income statement. (2)operating budgets:production schedules;purchasing schedules;

4、fixed asset acquisition (capital budgeting) .2. Organization of budget :(1)continuous budget(延续或滚动预算) :a budget for a month (or a quarter) will be added as one of these periods goes by . Thus there would be a 12 month budget at all times . by preparing continuous budgets ,managers are then kept awar

5、e of the needs for the next 12 months ,regardless of the time of the year .(2)static budget(静态预算)(prepared for only on level of volume which is the organizations goal):the static budget is not altered after it is drawn up ,regardless of changes in volume ,sale prices ,or costs . the focus of the sta

6、tic budget is future planning .(3)flexible budget(弹性预算)(a set of budgets covering a range of volume rather than a single volume level . It is also called a variance budget):the flexible budget shows how revenues and costs vary with volume throughout the budget range ;the focus of the flexible budget

7、 is evaluating past performance .3.After-tax cash flow =Earnings after taxes + depreciation expense + deferred taxes4.Percent of sales method :permits a company to forecast the amount of financing it will need for a given increase in sales . (1)*/current sales=*% (2)projected sales*%=$ (3)projected

8、sales(net income/sales) 1-(cash dividends/net income)=& (4)discretionary financing needed= projected total assets projected total liabilities projected owners equity5.DFN (Discretionary financing needs): funds that a firm must raise externally through borrowing or by selling new common or preferred

9、stock. EFN(External financing needs): All the firms needs for financing beyond the funds provided internally through the retention of earnings ,thus EFN = Predicted change in total assets predicted change in retained earnings .Chapter 5The Time Value of Money FVn= PV0 (1+i)n= PV0 FVIFi,nCompounded i

10、nterest PV0= FVn 1/(1+i)n= FVn PVIFi.n FVAn =PMTFVIFAi,n Ordinary annuity PV = PMTPVIFAi,n Annuities due = Annuities(1+i)Annuities Delayed annuity(uneven cash flow streams):先把不均衡的年金加成均等，用普通年金方法算完后，减去多加（加上多减）的钱数的现值。 PV=R/I perpetuity Perpetuity and Growing perpetuity PV=R/i-gGrowing perpetuity ,growt

11、h rate=gChapter 6Analysis of Risk and ReturnThe risk and return of one certain asset. . . of two assets. . .of n assets. . .of a risk-freeasset and n risky assetsthe relationship between a risky asset and n risky assetshow todecide the price of a risky asset1. concepts : (1)holding period returnR=Dt

12、 + (Pt - Pt-1)/Pt-1 Dividend ending beginning price price (2)expected return :r=E(r) 多个资产时加权平均 (3)=标准差=standard deviation AB=Cov(RA,RB)=E(RAt-E(RA)(RBt-E(RB) p2=XA2A2 + XB2B2 + 2(XAA)(XBB)AB p=portfolio (4)z=r-E(r)/ 即标准化成标准正态分布，z是横轴上的值 (5)v=/E(r) 变异系数 用于比较两种不同规模的投资的风险的时候 (6) 相关系数AB=Corr ( RA,RB)= AB

13、/AB (7)required return=risk-free return +risk premium=real rate of return + expected inflation premium2. the risk and return of two assets (graph)3. The risk and return of n assets & a risk-free asset and n risky assets (graph)efficient frontier capital market line (CML)optimal risky portfolio (CML与

14、efficient frontier的切点)4. the relationship between a risky asset and n risky assets(1)j=Covariancej,m / variancem=jmjm/m2(2)variance and standard deviation in a portfolio of many assets : the variance of the individual assets completely vanish as the number of assets becomes large. However, the covar

15、iance terms remain. p2=* (*=all covariances in the table)(3)characteristic line: y=ax+b a=5. how to decide the price of a risky assetCapital Asset Pricing Model (CAPM) : Ri = RF +I (RM RF)Expected return on a security = risk-free rate + beta of the security market risk premiumMajor problems of CAPM

16、: 1. Estimating expected future market returns2.Determiningan appropriate rf 3.Determining the best estimate of 4.Investors don totally ignore unsystematic risk 5.Betas are frequently unstable over time 6.Required returns are determined by macroeconomic factors6. 名词解释：1) CML: capital market line (gr

17、aph) 2)SML (security market line): the relationship between systematic risk and required rates of return for individual securities .(graph) 3)CAPM (Capital assets pricing model) 4)CL (Characteristic line) (graph)Chapter 7 & 8Valuation of SecuritiesDefinitions of valuecharacteristics of bonds preferr

18、ed stock and common stockbond valuation1. Definitions of value: liquidation value VS going-concern value(清算价值与持续经营价值) Book value VS market value(账面价值与市场价值) book value = accounting/historic value market value = normally related to expected future cash flow *market value does not necessarily bear any

19、relationship to book value *market value may be either greater or less than book value Intrinsic value / economic value VS Market value(内在价值/经济价值与市场价值)2. Bonds: 1) Different kinds of bonds pure discount bond(无息债券) level-coupon bonds(普通债券) consols ( perpetual bonds)(永续债券) 2) Features of bonds indentu

20、re(合同约束) call feature and bond refunding(赎回条款) sinking fund(偿债基金条款) convertible(可转换性) warrant(认股权证) bond ratings(债券信用评级)Preferred stock: features of preferred stock selling price and par value(面值与销售价格) adjustable rates(可调整收益率) cumulative dividends(可累积)现在没钱，以后会补齐。 participation(参与盈余分配) maturity(到期日)

21、call feature(可赎回条款) voting rights(投票权)无投票权 preferred stocks claim on assets and income(对公司收益和资产的优先索取权) convertibility(可转换性)Common stock: features of common stock residual claim on income and assets(剩余索取权) preemptive rights(优先认股权) limited liability(有限责任) takeover(接管)或代理proxy closely held corporation/

22、privately owned(紧密持股公司) publicly owned corporation/to be listed(上市公司/公众公司)3. Bond valuation : PV = F / (1+i)npure discount bonds PV = CF / iperpetual bonds (consols) PV = IPVIFAi,n + MPVIFi,nlevel-coupon bondsChapter 9Capital Budgeting and Cash Flow AnalysisPrinciples of estimating cash flowshow to

23、deal with taxes, depreciation, and working capital.1. Principles of estimating cash flows: 1)on an incremental basis if cash flow still exist when project does not exist, then exclude it. 2)on an after tax basis 3)include indirect effectsif new product causes existing customers to demand less of cur

24、rent products, we need to recognize that. 4)exclude sunk costssunk costs are irrelevant 5)opportunity costs of resources2. Estimating the NINV: step 1 cost plus installation and shipping plus step 2 increases in net working capital minus step 3 net proceeds from sale of existing assets plus or minus

25、(高于账面价值时算正outflow) step 4 taxes associated with the above sale equals NINVTax: savings before taxes (profit column)tax rate=$ net cash flow after taxes=savings before taxes (cash flow column) - $Depreciation: increased depreciation expense (profit column), nothing added to the cash flow column.Recov

26、ery of net working capital: the total amount of accumulated net working capital is usually recovered at the end of the life of the project.The resulting decrease in net working capital represents an increase in net cash flow.There are generally no tax considerations associated with the recovery of n

27、et working capital.Chapter 10 & 11Capital Budgeting: Decision Criteria & Risk Life of the project(EAA) NPV used when two projectsIRR NPV与IRR不一致时”NPV is the king!” are mutually exclusive.PI PB Different initial outlaysIIRR /NPV ( same) Multiple IRRs (现金流有正有负) MIRR used to solve the internal problem o

28、f a project.1. Concepts: 1)NPV (net present value): IO(NINV) NPV0 accept NPV0 reject 2)PI (profitability index): PI= IO(NINV) PI1 accept PI1 reject 3)IRR (internal rate of return): IO = 0 求出IRR IRRrequired rate of return (贴现率) accept IRRrequired rate of return reject 4)PB (payback period): The payba

29、ck period is the number of years needed to recover the initial cash outlay.2. Life of the project: A与B两项投资，持续时间不同。 步骤 1，算出两项投资的NPV 2，利用NPV= EAAPVIFAi,n 求出两项投资的EAA 3. NPV与IRR不一致的时候（图）：4. Different initial outlaysDate 0Date 1NPV(25%)IRRA-10m40m22m300%B-25m65m27m160%-15m25mIncremental IRR: ( -15m+25m)/

30、(1+IIRR)=0 求出IIRR=66.67%25% acceptNPV of incremental cash flows: (-15m+25m)/(1+25%)=5m0 acceptAccept project B.5. 现金流有正有负时：MIRRPVout=PVin 把负的现金流都贴到期初，把正的现金流都贴到期末，再把贴到期末的现金流除以(1+MIRR)n，贴回期初，令它与PVout相等，求MIRR。公式：Chapter 12The Cost of Capital Cost of debtvalue of bonds(1-t) Preferred stock发行费用（价格）f=WACC

31、 Retained earning Ri = Rf + (Rm Rf) New issued stocks1. Calculating Ka:Ka=We(Ke) + Wd(Ki) + Wp(Kp)1) Ki (after-tax cost of debt): 利用P= ItPVIFAKd,n + MPVIFKd,n求出Kd ，再利用Ki = Kd(1-t)求出Ki或者Ki = I (1 - t) / B (1 - F) Interest tax rate par value flotation (floating fee) of the bond 实际付出的钱 公司实际拿到的钱2) Kp (cost of preferred stock): Kp = D