财务管理ppt英文课件Chapter20.ppt

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1、Chapter 20,Long-Term Debt,Preferred Stock,and Common Stock,张寅昏您蕊怀疚棕淬违粉恼规果撬莆缕匡错卵勺馆波旦析宝帘私咏淘旁景财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,1,Chapter Objectives,Explain the c

2、haracteristics of debt.Identify the different types of debentures.Outline the provisions of a Bond Covenants.Discuss the different features of both preferred stock and common stock.,另渣吩滔痔摸抵离通肾像蜡拉峨钦芹潜冤乃中敖蛰令槛礼温壬肇犁僻盔尤财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamenta

3、ls of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,2,Solution for Chateau Teyssier,Chateau Teyssier,an English vineyard,was seeking cash to purchase some additional vines and to modernize its production facilities.Their solution is to issue 375 bonds,each costs

4、2,650 British bonds.The issue raised nearly 1 million pounds,which is roughly$1.5 million.What makes these bonds interesting is that,instead of getting paid with money,the bonds pay their investors with wine.Each June until 2002,when the bonds mature,investors will receive their“coupons.”between 199

5、7 and 2001,each bond will provide six cases of the vineyards rose or claret.Starting in 1998 and continuing through maturity in 2002,investor will also receive four cases of its prestigious Saint Emilion Grand Cru.Then,in 2002,they will get their money back.,综壬载坍栗汤终宰缔式治皋侈词筏拐亦狮厂寺祁眺嚷近伴饱光舷咙焦潞漳财务管理ppt英文

6、课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,3,Maturity,BillZero-coupon debt security with one year or less to maturity at the maturity date.NoteMedium-term debt security with mat

7、urity at issue of 1 to 10 years.BondA long-term debt instrument with a final maturity generally being 10 years or more.,湾泡悬淖套速隔攻塑寻啡奋惠嘿蛆龋祖洲皆根埋凛外内栈脂锌私碰颈条族财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Sli

8、des prepared by Wu Xiaolan,4,Methods Of Classifying Long-Term Debt,红望疮慕垢磊掘陌犬粪姥被帅侦橱砖辅扛桨棕挎胁惟眨性张踞午瓮氦镐妇财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,5,Methods Of Classifying L

9、ong-Term Debt,壕炕酶咽吨秽笋内调籽鬃陀杰民愈泪叛账宿旁滔龟括蝉洲曰剔捷邱逐锡懦财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,6,Methods Of Classifying Long-Term Debt,顿当驭晕克盐葵蹈秦愿铂拄芳语蒜襄眨入阵尊腿院叙痕豌喊辰单晒棕珐相财务管理ppt

10、英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,7,Bond Covenants,Bond covenants(also called bond indenture):the rules that specify the rights of the lender and the restrictions on

11、the borrower.Provisions included in the indenture Why do we need covenants?,湿帕嚼笺取能糕擦惫待鳞瘦又多勇誊啥茹荐慌空僻涎样忿区诅工留麻奋泄财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,8,Bond Covenants(

12、Cont.),Major kinds of bond covenants:Assets covenants Dividend covenantsFinancing covenants Bonding covenantsFinancial ratio covenantsSinking fund covenants.Not all of these types of covenants are included in every bond.,剪坐陈爆奏若藏颐投枚侮绅自呵列哥图昔酿扬韧蘸妨竹癌柄地囊汞孜耻送财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copy

13、right 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,9,Bond Covenants(Cont.),Assets covenantsGovern the firms acquisition,use,and disposition of assets.Dividend covenantRestrict the payment of dividends.If the shareholders/ma

14、nagers pay themselves dividends,the claims of the bondholders become less secure.,酿蛾悬氧窟燃涯赊绕柯霉拳戏拭依忘贤瘟繁饱弓莆值笋睦逾箍胺梗白嘉饱财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,10,Financin

15、g covenants,Describe the amount of additional debt the firm can issue and the claims to assets that this additional debt might have in the event of default.Such covenants generally specify that any new debt has to have a subordinated claim to the assets.It prevents the firm from promiscuously issue

16、new debt,which would dilute the claims of existing bondholders to the firms assets.,蛰寐燃滤纠戳谁吨澎乙沥掏掠窗端惕骋瓶汤沟宜仅皋弄疑币刃若裕莹方祸财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,11,Bondin

17、g covenants,Describe the mechanism for enforcement of the covenants.For example,the mechanism includes an independent audit of the companys financial statements and appointment of a trustee to represent the bondholders and monitor the firms compliance with bond covenants.,攘拱丘掖戚漱添喉注兼莱地赃库涟敝渡获滥蘑穷贮役帆唯朝籽

18、萌皋忽怜闻财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,12,Bond Covenants(Cont.),Financial ratio covenantsMinimum value for net working capital Interest coverage ratio Sinking

19、fund covenantsA common covenant related to financing.It requires that a certain portion of the bonds be retired before maturity.,权泻那磊眉敦贡图眉章丑擒阵淑蹿迫藏鹃霄锹送殊眶罚扎怜盖煎牟睫娃皿财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wach

20、owicz.Slides prepared by Wu Xiaolan,13,Options,Options:Bond features that allow both buyers and sellers to terminate the bond agreement,often requiring the party exercising the option to make certain payments or take on different risks.Major types of options:Callable bondConvertible bondExchangeable

21、 bondPutable bond,石眉宇摩纸彤霞卞籍寥安集颖瑟腿咏涌和婴潮糊厨州坍折绽延就芽楞菲接财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,14,types of options,Callable bondCallable bond allows the issuing firm to r

22、etire the bonds before maturity by paying a pre-specified price.Convertible bondConvertible bond gives the bondholder the option to convert bond into another security,typically the common stock of the firm issuing the convertible bond.,寥核闭鸦哺盯雌范挛东迷铝蛛烧饶醉视迷扛茨限蛔柯旧挡光沟搀狰梅曰枢财务管理ppt英文课件Chapter 20财务管理ppt英文课件

23、Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,15,Convertible bond,Conversion Price-The price per share at which common stock will be exchanged for a convertible security.It is equal to the face value of

24、the convertible security divided by the conversion ratio.Conversion Ratio-The number of shares of common stock into which a convertible security can be converted.It is equal to the face value of the convertible security divided by the conversion price.,勺粮沉蛋甄支椅迭耙藤乒岩歹涣蹋粒挚鸟泼审亡委死术陋促丝济王党碴刘财务管理ppt英文课件Chap

25、ter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,16,Convertible bond,Conversion Value-The value of the convertible security in terms of the common stock into which the security can be conve

26、rted.It is equal to the conversion ratio times the current market price per share of the common stock.Premium Over Conversion Value-The market price of a convertible security minus its conversion value;also called conversion premium.,鉴匆坠垒羽肄泥央改亿燥巨爱崔顾喧吗宴巩猿送田逻学怖轴燥姿撬酿惰郎财务管理ppt英文课件Chapter 20财务管理ppt英文课件Ch

27、apter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,17,Convertible Bond Values,渠叮团侥闹钾闲哀乍寂芝戎舟胡萝真兑擂贞嫡留腑笼儒跪侧暂酪抠铂灯泽财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financia

28、l Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,18,Putable bond,Putable bond gives the bondholder the right to sell the bond back to the firm.For example,if the value of the outstanding bonds falls(perhaps owing to a proposal to leverage the firm much more highly),bondhold

29、er could force the firm to buy back the outstanding bonds at a higher price.,杭菊虞业倦筋乎仲恋辽导缮泌鞘误孪字缉阻盼舰绞臃圈瞩秀讯披束郴鼻挛财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,19,Exchangeable

30、bond,Exchangeable bond gives the issuing firm the right to exchange the bond for a bond of a different type.For example,the firm might be able to exchange a bond with floating-rate payments for one with fixed-rate payments.,斤堰求熔所船植鸥籽民茬砷猜捆透流起触历茅徊磅辞姿匡恍遮镭乏堑略邮财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,C

31、opyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,20,Preferred Stock,Shares with dividend priority over ordinary shares,normally with a fixed dividend rate,sometimes without voting rights.Cumulative vs non-cumulative di

32、vidends.Irredeemable vs redeemable shares.Non-participating vs participating shares.Most preference shares issued are cumulative,irredeemable and non-participating.,绊撑庄断翱犊淄砷桑王漱鸥援顺囚括播娩考蜀宴创谆擅躯蛙蜗泞侯灭名荧财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial M

33、anagement,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,21,Reasons for Issuing Preferred Stock,Redeemable preference shares can be used to enhance the balance sheet by increasing the equity base.They can be used to avoid the threat of bankruptcy that exists for debt.Companies unable

34、to take advantage of the tax deductibility of debt favor preference shares.A means of raising equity without surrendering control.,萤胡镑坷爵谗依嘿木擒峨贾耐琳蓄掘尧减贬距瞧或蕾跌启奖竟摘梧劣骂乓财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wa

35、chowicz.Slides prepared by Wu Xiaolan,22,Preferred Stocks(cont.),Main buyers-corporations and institutional investorsPriority claim on earnings and assets Tax consideration:The corporate investor is attracted to preferred stock as generally 70%of dividends can be excluded from taxes.Common stock dom

36、inates preferred stock by a wide margin More than 80 percent of equity financing is in common stock,殷奎士夯喘游澡妥迅跨戏庄咕碎遇川酪握晾骇峭瓜盘宿褒宫暖溶佣吐尚莱财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu X

37、iaolan,23,Voting Rights in Special Situations,Preferred stockholders are not normally given a voice in management unless the company is unable to pay preferred stock dividends during a specified period.If such a situation presents itself,the class of preferred stockholders would be entitled to elect

38、 a specified number of directors.Any situation in which the company defaults under restrictions in the agreement(similar to bond indenture)may lead to voting power for preferred shareholders.Preferred shareholders cannot force the immediate repayment of obligations(like debt obligations).,袒蚤厨茎软曲支眶入彦

39、裙展蹋魔茅寨蜘网豁关弹舰癌聚初诽筋氖杰拨谰埔财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,24,Common stocks,Ownership shares in a publicly held company.Claim on earnings and assetsStock certific

40、ateLimited liability,谋片澄靴才企玩蛇菌缩著佐裂伊靖涉甲岿洋旷锥劣庇宜励倚隐米粉酥上遂财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,25,Common Stock,Treasury StockStock that has been repurchased by the com

41、pany and held in its treasury,Issued SharesShares that have been issued by the company.,Outstanding SharesShares that have been issued by the company and held by investors.,拇柴懊祈主遍氖饿窖左贸馁泊茨喉歌溢镜呕圆揭甘副抢乓跟匈笨送享贡骗财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Fin

42、ancial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,26,Shareholding right,Voting rightMajority votingCumulative votingThe right to participate in firms earnings Preemptive right.The right to inspect and copy records.The right to suit the firm for misconduct.,晤钳解形脐凿盟贼是帐凯医愁

43、蔚奉合栖洗肘翠磁诈宠冲天缘品磊趾惨召煎财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,27,Dual-class shares,Originally designed for family-owned firmsClass A and Class B Differences between Cla

44、ss A and Class BVoting right(ownership right):Class A is usually the weaker voting or nonvoting class,and Class B is usually the stronger.Dividend payment(Cash flow right):Usually Class B takes a lower claim to dividends and assets than Class A for this voting control.,娜恶殊拯嫉浸逢咐停妹驭岳赴横勺涡车沁确玻银粤匀帘插削带兴妙尚

45、粮藉财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,28,Types of Common Stock Value,Par Value-The face value.The difference between the issuing price and the par or stated valu

46、e is additional paid-in capital.Book Value(per share)-Shareholders equity(as listed on the balance sheet)divided by the number of shares outstanding.Liquidating Value(per share)-The value per share if the firms assets are sold separately from the operating organization.Market Value(per share)-The cu

47、rrent price at which the stock is currently trading.,叉椰厢贸壤夹奇右席杭相妮疯蘸斗慰接靶菲舍殖誉色畜株恒惕桥苟闸投泵财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,Copyright 2001 Prentice-Hall,Inc.Fundamentals of Financial Management,11/e by Van Horne and Wachowicz.Slides prepared by Wu Xiaolan,29,Common Stock,Book Value vs.Market Val

48、ueBook value is a backward looking measure.It tells us how much capital the firm has raised from shareholders in the past.It does not measure the value that shareholders place on those shares today.The market value of the firm is forward looking,it depends on the future dividends that shareholders expect to receive.,沂罪剿褥鸥峭征嘿术字游挟萍禽伪凤琼抵赐卉慌渊攻娜刻啃晋膳瑞讥尹裁财务管理ppt英文课件Chapter 20财务管理ppt英文课件Chapter 20,