Warrants,andConvertibles(财务管理,英文版)

20-1Copyright©2001byHarcourt,Inc.Allrightsreserved.PreferredstockLeasingWarrantsConvertiblesRecentinnovationsCHAPTER20HybridFinancing:PreferredStock,Leasing,Warrants,andConvertibles20-2Copyright©2001byHarcourt,Inc.Allrightsreserved.LeasingLeasingissometimesreferredtoas“offbalancesheet”financingifaleaseisnot“capitalized.”Inotherwords,itisnotshownonthebalancesheet.Leasingisasubstitutefordebtfinancingand,thus,usesupafirm’sdebtcapacity.(More...)20-3Copyright©2001byHarcourt,Inc.Allrightsreserved.Capitalleasesaredifferentfromoperatingleases:Capitalleasesdonotprovideformaintenanceservice.Capitalleasesarenotcancelable.Capitalleasesarefullyamortized.20-4Copyright©2001byHarcourt,Inc.Allrightsreserved.Analysis:Leasevs.Borrow-and-BuyData:Newmachinecosts$1,200,000.3-yearMACRSclasslife;4-yeareconomiclife.Taxrateof40%.kd=10%.(More...)20-5Copyright©2001byHarcourt,Inc.Allrightsreserved.Maintenanceof$25,000/year,payableatbeginningofeachyear.ResidualvalueinYear4of$125,000.4-yearleaseincludesmaintenance.Leasepaymentis$340,000/year,payableatbeginningofeachyear.20-6Copyright©2001byHarcourt,Inc.Allrightsreserved.DepreciationScheduleDepreciablebasis=$1,200,000MACRSDepreciationEnd-of-YearYearRateExpenseBookValue10.33$396,000$804,00020.45540,000264,00030.15180,00084,00040.0784,00001.00$1,200,00020-7Copyright©2001byHarcourt,Inc.Allrightsreserved.Inaleaseanalysis,whatdiscountrateshouldcashflowsbediscountedat?Sincecashflowsinaleaseanalysisareevaluatedonanafter-taxbasis,weshouldusetheafter-taxcostofborrowing.Previously,weweretoldthecostofdebt,kd,was10%.Therefore,weshoulddiscountcashflowsat6%.A-Tkd=10%(1–T)=10%(1–0.4)=6%.20-8Copyright©2001byHarcourt,Inc.Allrightsreserved.CostofOwningAnalysis(InThousands)Costofasset(1,200.0)Dep.taxsavings1158.4216.072.033.6Maint.(AT)2(15.0)(15.0)(15.0)(15.0)Res.value(AT)3_____________________75.0Netcashflow(1,215.0)143.4201.057.0108.6PVcostofowning(@6%)=-$766,948.01234(More...)20-9Copyright©2001byHarcourt,Inc.Allrightsreserved.Notes:1Depreciationisataxdeductibleexpense,soitproducesataxsavingsofT(Depreciation).Year1=0.4($396)=$158.4.2Eachmaintenancepaymentof$25isdeductiblesotheafter-taxcostoftheleaseis(1–T)($25)=$15.3Theendingbookvalueis$0sothefull$125salvage(residual)valueistaxed.20-10Copyright©2001byHarcourt,Inc.Allrightsreserved.CostofLeasingAnalysis(InThousands)Leasepmt(AT)1-204-204-204-204PVcostofleasing(@6%)=-$749,294.Note:1Eachleasepaymentof$340isdeductible,sotheafter-taxcostoftheleaseis(1–T)($340)=-$204.0123420-11Copyright©2001byHarcourt,Inc.Allrightsreserved.NetAdvantageofLeasingNAL=–=$766,948–$749,294=$17,654.PVcostofowningPVcostofleasingSincethecostofowningoutweighsthecostofleasing,thefirmshouldlease.20-12Copyright©2001byHarcourt,Inc.Allrightsreserved.Supposecomputer’sresidualvaluecouldbeaslowas$0orashighas$250,000,butexpectedvalueis$125,000.HowcouldtheriskinessoftheSVbeincorporatedintheanalysis?Whateffectwouldthishaveonleasedecision?Toaccountforrisk,therateusedtodiscounttheSVwouldbeincreased;therefore,thecostofowningwouldbeevenhigher.Leasingbecomesevenmoreattractive.20-13Copyright©2001byHarcourt,Inc.Allrightsreserved.Whateffectwouldacancellationclausehaveontheriskinessofthelease?Acancellationclauselowerstheriskoftheleasetothelessee,butincreasestherisktothelessor.20-14Copyright©2001byHarcourt,Inc.Allrightsreserved.Preferreddividendsarefixed,buttheymaybeomittedwithoutplacingthefirmindefault.Mostpreferredstocksprohibitthefirmfrompayingcommondividendswhenthepreferredisinarrears.Usuallycumulativeuptoalimit.Howdoespreferredstockdifferfromcommonequityanddebt?20-15Copyright©2001byHarcourt,Inc.Allrightsreserved.Dividendsareindexedtotherateontreasurysecuritiesinsteadofbeingfixed.ExcellentS-Tcorporateinvestment:Only30%ofdividendsaretaxabletocorporations.Thefloatingrategenerallykeepsissuetradingnearpar.Whatisfloatingratepreferred?20-16Copyright©2001byHarcourt,Inc.Allrightsreserved.However,iftheissuerisrisky,thefloatingratepreferredstockmayhavetoomuchpriceinstabilityfortheliquidassetportfoliosofmanycorporateinvestors.20-17Copyright©2001byHarcourt,Inc.Allrightsreserved.Awarrantisalong-termcalloption.Aconvertibleconsistsofafixedratebondplusacalloption.Howcanaknowledgeofcalloptionshelponeunderstandwarrantsandconvertibles?20-18Copyright©2001byHarcourt,Inc.Allrightsreserved.P0=$10.kdof20-yearannualpaymentbondwithoutwarrants=12%.50warrantswithanexercisepriceof$12.50eachareattachedtobond.Eachwarrant’svaluewillbe$1.50.Giventhefollowingfacts,whatcouponratemustbesetonabondwithwarrantsifthetotalpackageistosellfor$1,000?20-19Copyright©2001byHarcourt,Inc.Allrightsreserved.Step1:CalculateVBondVPackage=VBond+VWarrants=$1,000.VWarrants=50($1.50)=$75.VBond+$75=$1,000VBond=$925.20-20Copyright©2001byHarcourt,Inc.Allrightsreserved.Step2:FindCouponPaymentandRateNI/YRPVPMTFV2012-9251000Solution:110Therefore,therequiredcouponrateis$110/$1,000=11%.20-21Copyright©2001byHarcourt,Inc.Allrightsreserved.ThepackagewouldactuallyhavebeenworthVpackage=$925+50($2.50)=$1,050,whichis$50morethantheactualsellin