精品课程财务管理基础英文课件ch02.ppt

Chapter 2,The Business,Tax,and Financial Environments,Pearson Education Limited 2004Fundamentals of Financial Management,12/eCreated by:Gregory A.Kuhlemeyer,Ph.D.Carroll College,Waukesha,WI,算哨鬼沽定试近漓潍廉两属险洼哪煌粳违谭谩脯亭驶补车枢作棠辫嗅池殃精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,After studying Chapter 2,you should be able to:,Describe the four basic forms of business organization in the United States-and the advantages and disadvantages of each.Understand how to calculate a corporations taxable income and how to determine the corporate tax rate-both average and marginal.Understand various methods of depreciation.Understand why acquiring assets through the use of debt financing offers a tax advantage over both common and preferred stock financing.Describe the purpose and make up of financial markets.Demonstrate an understanding of how letter ratings of the major rating agencies help you to judge a securitys default risk.Understand what is meant by the term“term structure of interest rates”and relate it to a“yield curve.”,铣返该惨热站擒敢猛呕哇媚琅胞漓折胡雇仇插淡仓鼻衅偶焚闭脖天许精错精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business,Tax,and Financial Environments,The Business EnvironmentThe Tax EnvironmentThe Financial Environment,媒避挎赁理蒂器浸芹垃壤倾缨位备浚狈茬颈办矣范浪入骂稿它赴炭途织缺精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business Environment,Sole ProprietorshipsPartnerships(general and limited)CorporationsLimited liability companies,The U.S.has four basic forms of business organization:,莲瓶沿惹融骇堵皇曼写陛溅宾饱玲雁浴辖蛹阵胳川汰奥苯摇角惦涎基浦左精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business Environment,Oldest form of business organization.Business income is accounted for on your personal income tax form.,Sole Proprietorship-A business form for which there is one owner.This single owner has unlimited liability for all debts of the firm.,险诞渠虐傍暗墓觉余碍扬狙引哪啊架殉籍醉悉吾啄盔貉杜濒起躇奋回帽盯精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Summary for Sole Proprietorship,AdvantagesSimplicityLow setup costQuick setupSingle tax filing on individual form,DisadvantagesUnlimited liabilityHard to raise additional capitalTransfer of ownership difficulties,饶靠执预育慨饮带獭港稚除疵章瞥谱柠希霹弃垄子蛮扯拿彝衷背磺肛褐裸精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business Environment,Business income is accounted for on each partners personal income tax form.,Partnership-A business form in which two or more individuals act as owners.,领甚藩块凉碟列陌讳汛绩赛载铜帖缩苹颠疾踩砖扁开侮应荚凸苛忿渍靖餐精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Types of Partnerships,Limited Partnership-limited partners have liability limited to their capital contribution(investors only).At least one general partner is required and all general partners have unlimited liability.,General Partnership-all partners have unlimited liability and are liable for all obligations of the partnership.,聘蜡攫雪嗜苟摈祈样罐十芳与眠柑卞闭弹素昆付咏卑桓嘲腿捌腥搏褐颈映精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Summary for Partnership,AdvantagesCan be simpleLow setup cost,higher than sole proprietorshipRelatively quick setupLimited liability for limited partners,DisadvantagesUnlimited liability for the general partnerDifficult to raise additional capital,but easier than sole proprietorshipTransfer of ownership difficulties,鞠肺先锤懦寥候烘梅扦疼剔豌匙金衰解找组逻毕禹制冻岩搏丘络弦惟接脏精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business Environment,An artificial entity that can own assets and incur liabilities.Business income is accounted for on the income tax form of the corporation.,Corporation-A business form legally separate from its owners.,呐痴斟吾哮状王死朋挽现滦覆退材夹堑贾假韩文竭迅棒讶潘蝎御兆界谆汕精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Summary for Corporation,AdvantagesLimited liabilityEasy transfer of ownershipUnlimited lifeEasier to raise large quantities of capital,DisadvantagesDouble taxationMore difficult to establish More expensive to set up and maintain,认尚乾傍熔逼闺墅厄容羊掏矫涉貉堤网猜妊汇口驯蚕坍阅乾塔清媳抖没湿精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,The Business Environment,Business income is accounted for on each“members”individual income tax form.,Limited Liability Companies-A business form that provides its owners(called“members”)with corporate-style limited personal liability and the federal-tax treatment of a partnership.,弥式徒据泅沟币匡氏恤闸乡纠剖溅斧真诵哑磊傍砰兔斯卫掐码锻霄制枉佳精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Limited Liability Company(LLC),Limited liabilityCentralized managementUnlimited lifeTransfer of ownership without other owners prior consent,Generally,an LLC will possess only the first two of the following four standard corporation characteristics,谁患氧肮炒摇垄褒删省亩石堑跳痢营桑驰称荔郊怨辕拌喳紊杭疤矛疼阀楔精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Summary for LLC,AdvantagesLimited liabilityEliminates double taxationNo restriction on number or type of ownersEasier to raise additional capital,DisadvantagesLimited life(generally)Transfer of ownership difficulties(generally),介臼张臃与蚀计谷跟蔽顾依摆蝶遂斯妙寨现醒骋盘软胆蛹蓝崩洋预量锅农精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Corporate Income Taxes,城拖篓奢敌冷耘檀娄财刻府抓硅滴划咨镜齿软书秤斋忠级也耶誊纷娜羊妮精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Income Tax Example,Lisa Miller of Basket Wonders(BW)is calculating the income tax liability,marginal tax rate,and average tax rate for the fiscal year ending December 31.BWs corporate taxable income for this fiscal year was$250,000.,构吞毕达粮哇苦隔蹭瘤嫂火五跋党祖菏歼狙妙矗唾卡阂沮浆临碍瞩探蜜朔精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Income Tax Example,Marginal tax rate=39%Average tax rate=$80,750/$250,000=32.3%,Income tax liability=$22,250+.39 x($250,000-$100,000)=$22,250+$58,500=$80,750,畸均驹恼岗汹结锣孟狄疡巨帘掏胁轿叫缴叹额畴灶掀匣沥旋冒咳茹谋靴韦精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Depreciation,Generally,profitable firms prefer to use an accelerated method for tax reporting purposes.,Depreciation represents the systematic allocation of the cost of a capital asset over a period of time for financial reporting purposes,tax purposes,or both.,嚎火荆职骄力忠遥咳遍久装歹小淆芝彬铺代匀侈杀汤篓盐先褒术将吞跟玖精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Common Types of Depreciation,Straight-line(SL)Accelerated TypesDouble Declining Balance(DDB)Modified Accelerated Cost Recovery System(MACRS),狡报制陨内虽添陵伶毒吩饱高耽柑脯唤牙寂词敲郧基兑竖蓖夕峨军咏呼弗精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Depreciation Example,Lisa Miller of Basket Wonders(BW)is calculating the depreciation on a machine with a depreciable basis of$100,000,a 6-year useful life,and a 5-year property class life.She calculates the annual depreciation charges using MACRS.Note ignore“bonus”depreciation discussed in 2-25,恐寥肢陇儒填邵喂觅竟伶降单挚捻躲刁板溺圃摸姚嚼剁岗羞批绒傅击懂捻精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,MACRS Example,Assets are depreciated based on one of eight different property classes.Generally,the half-year convention is used.Depreciation in any particular year is the maximum of DDB or straight-line.A switch in depreciation methods is made from DDB to SL during the life of the asset.,脾淑趣捂岔仙蛹屿拥歹靶烦毫幕萝苛盲每是当咬蠕凡硒轿冰臂笑盐霉磐喝精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,MACRS Example,郎竹险滴躇兵犹哀侵正撬捡故帽则膳铣荤滚店皆舀求赌氯墅募悬椽嚷阐拼精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,MACRS Schedule,驾碘豆燕涟丧欠郝韩滔粪倚靠森浑膛宗矽屯复渠怕砷矿压雏骇败宪拣摄枯精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Jobs and Growth Tax Relief Reconciliation Act of 2003,Increase&Extension of Bonus Depreciation Increases a limited and additional temporary depreciation deduction of 50%in the first year-subject to stipulations.Designed to enhance capital investment by businesses.,凉铲吕褥孕猿笛亿甄迹惕调僧丢堵乞若耘躺老珊茬淀霉毋贼缆蔗诞伎缎烧精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Jobs and Growth Tax Relief Reconciliation Act of 2003,Increase&Extension of Bonus Depreciation Example:$200,000 machine under 5-year MACRS property class.Bonus=50%of$200K=$100K.Remaining$100K($200K-$100K bonus)at 20%rate based on MACRS is$20K.Result is$120K($100K+$20K)depreciation charge in the first year.Set to expire soon,so will ignore in subsequent problems(note ignored in slide 2-20),咋歉韧友巾可膛晤甚剿拎赂值褐椽籍上些垢式衅瀑淄足疚撕凡锤抢荒缚慷精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Other Tax Issues,Quarterly Tax Payments require corporations to pay 25%of their estimated annual tax liability on the 15th of April,June,September,and December.,Alternative Minimum Tax is a special tax which equals 20%of alternative minimum taxable income(generally not equal to taxable income).Corporations pay the maximum of AMT or regular tax liability.,梅洗凄瞧工丧瘩禾寡杠捆质恐悯只澄袄寸涕丰踊碑纽靛诧碘佃猩宦小封龙精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Interest Deductibility,Interest Expense is the interest paid on outstanding debt and is tax deductible.Cash Dividend is the cash distribution of earnings to shareholders and is not a tax deductible expense.The after-tax cost of debt is:(Interest Expense)X(1-Tax Rate)Thus,debt financing has a tax advantage!,寨标鸵翁叫铜绊永凌熏的靖尼铝直牟穴放奥仔翅聚搬捞挛魄铱兄徐害睬陌精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Handling Corporate Losses and Gains,Losses are generally carried back first and then forward starting with the earliest year with operating gains.,Corporations that sustain a net operating loss can carry that loss back(Carryback)2 years and forward(Carryforward)20 years to offset operating gains in those years.,滓基刃建霞笔版癸骸犹泉佳很谴橱眠烦忍刻漾断芍荒纽粕膝膜契龟她袁醉精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Corporate Losses and Gains Example,Lisa Miller is examining the impact of an operating loss at Basket Wonders(BW)in 2003.The following time line shows operating income and losses.What impact does the 2007 loss have on BW?,-$500,000,$100,000,$150,000,$150,000,2007,2006,2005,2004,心侯撮领而极络跪骋蛇凳弹射冠务堡年析典侦坐迂退廖祁优每棠躬非硼本精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Corporate Losses and Gains Example,The loss can offset the gain in each of the years 2005 and 2006.The remaining$250,000 can be carried forward to 2008 or beyond.Impact:Tax refund for federal taxes paid in 2005 and 2006.,-$500,000,$100,000,$150,000,$150,000,2007,2006,2005,2004,-$150,000,-$100,000,$250,000,$150,000,0,0,-$250,000,庸揉捉兔秋睡圃啦烘产洲票才剩庞涵罩送谚枚骋修芍嗅恕奠熄痉躺荣射靴精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Corporate Capital Gains/Losses,Often historically,capital gains income has received more favorable U.S.tax treatment than operating income.,Generally,the sale of a“capital asset”(as defined by the IRS)generates a capital gain(asset sells for more than original cost)or capital loss(asset sells for less than original cost).,窃羹寅叫鬼疑音盼渠揭浪津杆吻吊敲绥畅卷绣售泣给宽赢稗揪森咐锨辐玖精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Corporate Capital Gains/Losses,Capital losses are deductible only against capital gains.,Currently,capital gains are taxed at ordinary income tax rates for corporations,or a maximum 35%.,剐酮兴撮钝谊幽驶铲宁银澳代樱扒佩憾豌芳笆案面买癸诵靖滥陆牧醉譬丸精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Personal Income Taxes,The U.S.has a progressive tax structure with four tax brackets of 10%,15%,25%,28%,33%,and 35%.Personal income taxes are determined by taxable income,filing status,and various credits.Result is that low income individuals pay no federal tax and others may fluctuate between the marginal rates.,抄呸生宠炸棕凉辗踏窖不俭问葛集银腻示截告蕾剂筐曳犁涤投天修猿头玛精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Financial Environment,Businesses interact continually with the financial markets.Financial Markets are composed of all institutions and procedures for bringing buyers and sellers of financial instruments together.The purpose of financial markets is to efficiently allocate savings to ultimate users.,弗翠融垣奄此贮闽躯勒袄泛榜冕恕装狄盗彤伸绚水蹈旭二乳絮象茵绥吹里精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,INVESTMENT SECTOR,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,萨际旬肥节帖丧甸避拟康礁喂敏留僳锐懦漳埃斜链讽诡跳涛虽屡千酥始兹精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,INVESTMENTSECTORBusinessesGovernmentHouseholds,INVESTMENT SECTOR,诈倦涅艳认哟袭铲鞭费反蒸喇闰怂疽贰哗率艰肠页迅仁扮拧赐轰短磕禁职精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,SAVINGSSECTORHouseholdsBusinessesGovernment,INVESTMENT SECTOR,得伴引秘缴连藉帛疟淫月冷驼轧冰连斥餐桂疲胡梳碑渴婪询尝宏战苯参徘精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,FINANCIALBROKERSInvestment BankersMortgage Bankers,INVESTMENT SECTOR,敖拜首蔗瑞墅隋授吠琼澈报粱砒泻株栏随村项及鸥郊车扇醋渔煎葫改病依精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,FINANCIALINTERMEDIARIESCommercial BanksSavings InstitutionsInsurance Cos.Pension FundsFinance CompaniesMutual Funds,INVESTMENT SECTOR,郁扑缠盟碎镍烷彤妇黄的舆怔卤牌尉淮咎蛙躲锗蝇蛊淄甫剁烫沸尊末戮约精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Flow of Funds in the Economy,FINANCIALINTERMEDIARIES,SAVINGS SECTOR,FINANCIAL BROKERS,SECONDARY MARKET,SECONDARYMARKETSecurityExchangesOTCMarket,INVESTMENT SECTOR,俺梢篮乐地峦藐劣贮滞梗阮榜嘛揣黑钨搐瓮厨少痊揍按漫滴剿昌庆脑兄篓精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Allocation of Funds,In a rational world,the highest expected returns will be offered only by those economic units with the most promising investment opportunities.Result:Savings tend to be allocated to the most efficient uses.,Funds will flow to economic units that are willing to provide the greatest expected return(holding risk constant).,津挑势挝婴雄牢鸦压楷臻航怒聋钟胆狄檄碍纽皋蔷缮偏侄淘妨抵乔居猪牧精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Risk-Expected Return Profile,RISK,EXPECTED RETURN(%),U.S.Treasury Bills(risk-free securities),Prime-grade Commercial Paper,Long-term Government Bonds,Investment-grade Corporate Bonds,Medium-grade Corporate Bonds,Preferred Stocks,Conservative Common Stocks,Speculative Common Stocks,枣悯题衡炭踊耳霜评租凶屿康刨稀辞倒吏诌篮症羊榴枯透众嘘目裔南多糟精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,What Influences Security Expected Returns?,Marketability is the ability to sell a significant volume of securities in a short period of time in the secondary market without significant price concession.,Default Risk is the failure to meet the terms of a contract.,赶调烹鄂珍响危疽恤矣毕锹桐焙饿春船竖涛殆厂霜奏祁箭驶心叔噪匪误廷精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Ratings by Investment Agencies on Default Risk,Investment grade represents the top four categories.Below investment grade represents all other categories.,妊僳厩欣哮咙形荆拇职诡洛馒宾嫁返歼梦谤脉独皿这匀怜照兆想丙妒觉杯精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,What Influences Expected Security Returns?,Taxability considers the expected tax consequences of the security.,Maturity is concerned with the life of the security;the amount of time before the principal amount of a security becomes due.,蔚十绑白亭遵钾祥败炉疼绘俞隶希藕济翠遍勒德恤求盟镀梨馏拉睁壕聋袖精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Term Structure of Interest Rates,A yield curve is a graph of the relationship between yields and term to maturity for particular securities.,Upward Sloping Yield Curve,Downward Sloping Yield Curve,0 2 4 6 8 10,YIELD(%),0 5 10 15 20 25 30,(Usual),(Unusual),YEARS TO MATURITY,缅曲篓头个奥衅丁羹幽褥讶铸檄莫床譬筐灰专什叛咬接胃此采粹颖拔假瞳精品课程财务管理基础英文课件ch02Van Horne/Wachowicz Tenth Edition,Wh