CH17FinancingCurrentAssets(财务管理,英文版)

17-1Copyright©2001byHarcourt,Inc.Allrightsreserved.CHAPTER17FinancingCurrentAssetsWorkingcapitalfinancingpoliciesA/P(tradecredit)CommercialpaperS-Tbankloans17-2Copyright©2001byHarcourt,Inc.Allrightsreserved.WorkingCapitalFinancingPoliciesModerate:Matchthematurityoftheassetswiththematurityofthefinancing.Aggressive:Useshort-termfinancingtofinancepermanentassets.Conservative:Usepermanentcapitalforpermanentassetsandtemporaryassets.17-3Copyright©2001byHarcourt,Inc.Allrightsreserved.Years$PermC.A.FixedAssetsTemp.C.A.Lowerdashedline,moreaggressive.}S-TLoansL-TFin:Stock,Bonds,Spon.C.L.ModerateFinancingPolicy17-4Copyright©2001byHarcourt,Inc.Allrightsreserved.ConservativeFinancingPolicyFixedAssetsYears$PermC.A.L-TFin:Stock,Bonds,Spon.C.L.MarketableSecuritiesZeroS-Tdebt17-5Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatisshort-termcredit,andwhatarethemajorsources?S-Tcredit:Anydebtscheduledforrepaymentwithinoneyear.Majorsources:Accountspayable(tradecredit)BankloansCommercialpaperAccruals17-6Copyright©2001byHarcourt,Inc.Allrightsreserved.IsS-TcreditriskierthanL-T?Tocompany,yes.Requiredrepaymentalwayslooms.Mayhavetroublerollingoverloans.Advantagesofshort-termcredit:Lowcost--visualizeyieldcurve.Cangetfundsrelativelyquickly.Canrepaywithoutpenalty.17-7Copyright©2001byHarcourt,Inc.Allrightsreserved.Isthereacosttoaccruals?Dofirmshavemuchcontroloveramountofaccruals?Accrualsarefreeinthatnoexplicitinterestischarged.Firmshavelittlecontroloverthelevelofaccruals.Levelsareinfluencedmorebyindustrycustom,economicfactors,andtaxlaws.17-8Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatistradecredit?Tradecreditiscreditfurnishedbyafirm’ssuppliers.Tradecreditisoftenthelargestsourceofshort-termcredit,especiallyforsmallfirms.Spontaneous,easytoget,butcostcanbehigh.17-9Copyright©2001byHarcourt,Inc.Allrightsreserved.B&Bbuys$3,030,303gross,or$3,000,000net,ontermsof1/10,net30,andpaysonDay40.Howmuchfreeandcostlytradecredit,andwhat’sthecostofcostlytradecredit?Netdailypurchases=$3,000,000/360=$8,333.17-10Copyright©2001byHarcourt,Inc.Allrightsreserved.Gross/NetBreakdownCompanybuysgoodsworth$3,000,000.That’sthecashprice.Theymustpay$30,303moreiftheydon’ttakediscounts.Thinkoftheextra$30,303asafinancingcostsimilartotheinterestonaloan.Wanttocomparethatcostwiththecostofabankloan.17-11Copyright©2001byHarcourt,Inc.Allrightsreserved.Payablesleveliftakediscount:Payables=$8,333(10)=$83,333.CreditBreakdown:Totaltradecredit=$333,333Freetradecredit=83,333Costlytradecredit=$250,000Payableslevelifdon’ttakediscount:Payables=$8,333(40)=$333,333.17-12Copyright©2001byHarcourt,Inc.Allrightsreserved.NominalCostofCostlyTradeCreditButthe$30,303ispaidallduringtheyear,notatyear-end,soEARrateishigher.Firmloses0.01($3,030,303)=$30,303ofdiscountstoobtain$250,000inextratradecredit,sokNom==0.1212=12.12%.$30,303$250,00017-13Copyright©2001byHarcourt,Inc.Allrightsreserved.NominalCostFormula,1/10,net40Pays1.01%12timesperyear.%.12.121212.0120101.030360991periodDiscounttakenDays360%Discount1%DiscountkNom17-14Copyright©2001byHarcourt,Inc.Allrightsreserved.EffectiveAnnualRate,1/10,net40Periodicrate=0.01/0.99=1.01%.Periods/year=360/(40–10)=12.EAR=(1+Periodicrate)n–1.0=(1.0101)12–1.0=12.82%.17-15Copyright©2001byHarcourt,Inc.Allrightsreserved.CommercialPaper(CP)Shorttermnotesissuedbylarge,strongcompanies.B&Bcouldn’tissueCP--it’stoosmall.CPtradesinthemarketatratesjustaboveT-billrate.CPisboughtwithsurpluscashbybanksandothercompanies,thenheldasamarketablesecurityforliquiditypurposes.17-16Copyright©2001byHarcourt,Inc.Allrightsreserved.AbankiswillingtolendB&B$100,000for1yearatan8percentnominalrate.WhatistheEARunderthefollowingfiveloans?1.Simpleannualinterest,1year.2.Simpleinterest,paidmonthly.3.Discountinterest.4.Discountinterestwith10percentcompensatingbalance.5.Installmentloan,add-on,12months.17-17Copyright©2001byHarcourt,Inc.Allrightsreserved.WhymustweuseEARtoevaluatethealternativeloans?Nominal(quoted)rate=8%inallcases.Wewanttocompareloancostratesandchooselowestcostloan.WemustmakecomparisononEAR=Equivalent(orEffective)AnnualRatebasis.17-18Copyright©2001byHarcourt,Inc.Allrightsreserved.SimpleAnnualInterest,1-YearLoan“Simpleinterest”meansnotdiscountoradd-on.Interest=0.08($100,000)=$8,000.%.0.808.0000,100$000,8$EARkNomOnasimpleinterestloanofoneyear,kNom=EAR.17-19Copyright©2001byHarcourt,Inc.Allrightsreserved.SimpleInterest,PaidMonthlyMonthlyinterest=(.08/12)(100,000)=$666.67.-100,000.00-666.67100,0000112-666.67(More…)...INPUTSOUTPUT12100000-666.67-100000NI/YRPVPMTFV0.666717-20Copyright©2001byHarcourt,Inc.Allrightsreserved.kNom=(Monthlyrate)(12)=0.66667(12)=8.00%.or:8NOM%,12P/YR,EFF%=8.30%.Note:Ifinterestwerepaidquarterly,then:%.24.81408.01EAR4Daily,EAR=8.33%.%.30.811208.01EAR1217-21Copyright©2001byHarcourt,Inc.Allrightsreserved.Interestdeductible=0.08($100,000)=$8,000.Usablefunds=$100,000–$8,000=$92,000.8%DiscountInterest,1Year01i=?92,000-100,0001920-1008.6957%=EARNPVI/YRPMTFVINPUTSOUTPUT17-22Copyright©2001byHarcourt,Inc.Allrig