Английский язык. Практический курс для решения бизнес-задач
Шрифт:
VL = VU + PVITS
where VL = value if levered;
VU = value if financed 100% with equity;
PVITS = present value of interest tax shield.
The unlevered value is found by discounting the unlevered free cash flow at the required return on assets. The present value of the interest tax shield is found by discounting the interest tax shield savings at the required return on debt, rD.
The APV method is useful for valuing firms with a changing capital structure since the return on assets is independent of capital structure. For example, in a leveraged buyout, the debt to equity ratio gradually declines, so the required ROE and the WACC change as the lenders are repaid. However, when calculating the terminal value it may be appropriate to assume a stable capital structure, so in calculating the terminal value in a leveraged buyout situation the WACC method may be a better approach.
Flows to Equity Method
The flows to equity method sums the NPV of the cash flows to equity and debt.
Then,
VL = E + D
WACC Method
The WACC method discounts the unlevered free cash flow at the weighted average cost of capital to arrive at the levered value of the firm.
Cash Flows to Debt and Equity
When calculating the amount of cash flowing to debt and equity holders, it is not appropriate to use the unlevered free cash flows because these cash flows do not reflect the tax savings from the interest paid. Starting with the UFCF, add back the taxes saved to obtain the total amount of cash available to suppliers of capital.
Hurdle Price
At times a firm may wish to know at what price it would have to sell its product for a particular investment to have a positive NPV. To determine this price, express the operating cash flow in terms of price. Write out the expression for the NPV using the appropriate discount rate. For the longer operating period, one can calculate an annuity factor to multiply by the operating cash flow expression. Solve the expression for the cash flow that would result in an NPV of zero. Since the operating cash flow was written in terms of price, the price now can be found.
Debt Valuation
While debt may be issued at a particular face value and coupon rate, the debt value changes as market interest rates change. The debt can be valued by determining the present value of the cash flows, discounting the coupon payments at the market rate of interest for debt of the same duration and rating. The final period’s cash flow will include the final coupon payment and the face value of the bond.
Optimal Capital Structure
The total value of a firm is the sum of the value of its equity and the value of its debt. The optimal capital structure is the amount of debt and equity that maximizes the value of the firm.
Share Buyback
If a firm has extra cash on hand it may choose to buy back some of its outstanding shares. This decision can be based on information that the firm has and that the market does not have. Therefore, a share buyback could serve as a signal that the share price has potential to rise at above average rates.
Source: www.quickmba.com
Essential Vocabulary
1. historical cost –
2. trademark n – торговая марка
3. accounting profit – учетная (бухгалтерская) прибыль
4. paid-in capital – авансированный (оплаченный) капитал
5. cash flow statement – отчет о движении денежных средств
6. operating activities – операционная деятельность
7. investing activities – инвестиционная деятельность
8. financing activities – финансовая деятельность
9. cash cycle – денежный цикл
10. payables n., pl – кредиторская задолженность
11. expensing of costs – вычитать расходы для целей налогообложения
12. income statement – отчет о прибылях и убытках
13. cost of goods sold (COGS) – себестоимость реализованной продукции
14. current assets – текущие (краткосрочные) активы
15. collection period – средний срок инкассации поступлений
16. inventory period – средний срок реализации запасов
17. payables period – средний срок покрытия кредиторской задолженности
18. financial ratio – финансовый коэффициент
19. short-term loan – краткосрочный кредит
20. term loan – срочный (с фиксированным сроком) кредит
21. revolving loan – возобновляемый (револьверный) кредит
22. evergreen loan – «вечнозеленый» кредит (регулярно возобновляемая кредитная линия без требования периодического полного погашения и с фиксированным общим сроком, после чего она может быть снова возобновлена)
23. unlevered a – безрычаговый (без привлечения заемных средств)
24. all-equity financing – финансирование только на основе собственного капитала
25. debt to equity (D/E) ratio – отношение заемного капитала к собственному
26. debt to value (D/V) ratio – отношение заемного капитала к ценности компании
27. Earnings before Interest and Tax (EBIT) – прибыль до уплаты процентов и налогов
28.risk premium – премия за риск
29. opportunity cost – цена возможности, упущенная прибыль
30. Capital Assets Pricing Model (CAPM) – модель оценки фиксированных активов
31. perpetuity n – бессрочное владение, пожизненная рента
32.pure play – «чистая игра» (компания, занимающаяся почти исключительно одним видом деятельности)
33. Adjusted Present Value (APV) – скорректированная приведенная ценность