第十四章 长期融资简介

McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-0ChapterOutline14.1CommonStock14.2CorporateLong-TermDebt:TheBasics14.3PreferredStock14.4PatternsofFinancing14.5RecentTrendsinCapitalStructure14.6SummaryandConclusionsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-114.1CommonStock•ParandNo-ParStock•AuthorizedversusIssuedCommonStock•CapitalSurplus•RetainedEarnings•MarketValue,BookValue,andReplacementValue•Shareholders’Rights•Dividends•ClassesofStockMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-2ParandNo-ParStock•Thestatedvalueonastockcertificateiscalledtheparvalue.–Parvalueisanaccountingvalue,notamarketvalue.–Thetotalparvalue(thenumberofsharesmultipliedbytheparvalueofeachshare)issometimescalledthededicatedcapitalofthecorporation.•Somestockshavenoparvalue.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-3Authorizedvs.IssuedCommonStock•Thearticlesofincorporationmuststatethenumberofsharesofcommonstockthecorporationisauthorizedtoissue.•Theboardofdirectors,afteravoteoftheshareholders,mayamendthearticlesofincorporationtoincreasethenumberofshares.–Authorizingalargenumberofsharesmayworryinvestorsaboutdilutionbecauseauthorizedsharescanbeissuedlaterwiththeapprovaloftheboardofdirectorsbutwithoutavoteoftheshareholders.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-4CapitalSurplus•Usuallyreferstoamountsofdirectlycontributedequitycapitalinexcessoftheparvalue.–Forexample,suppose1,000sharesofcommonstockhavingaparvalueof$1eacharesoldtoinvestorsfor$8pershare.Thecapitalsurpluswouldbe($8–$1)×1,000=$7,000McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-5RetainedEarnings•Notmanyfirmspayout100percentoftheirearningsasdividends.•Theearningsthatarenotpaidoutasdividendsarereferredtoasretainedearnings.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-6MarketValue,BookValue,andReplacementValue•MarketValueisthepriceofthestockmultipliedbythenumberofsharesoutstanding.–AlsoknownasMarketCapitalization•BookValue–Thesumofparvalue,capitalsurplus,andaccumulatedretainedearningsisthecommonequityofthefirm,usuallyreferredtoasthebookvalueofthefirm.•ReplacementValue–Thecurrentcostofreplacingtheassetsofthefirm.•Atthetimeafirmpurchasesanasset,marketvalue,bookvalue,andreplacementvalueareequal.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-7Shareholders’Rights•Therighttoelectthedirectorsofthecorporationbyvoteconstitutesthemostimportantcontroldeviceofshareholders.•Directorsareelectedeachyearatanannualmeetingbyavoteoftheholdersofamajorityofshareswhoarepresentandentitledtovote.–Theexactmechanismvariesacrosscompanies.•Theimportantdifferenceiswhethersharesaretobevotedcumulativelyorvotedstraight.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-8CumulativeversusStraightVoting•Theeffectofcumulativevotingistopermitminorityparticipation.–Undercumulativevoting,thetotalnumberofvotesthateachshareholdermaycastisdeterminedfirst.Usually,thenumberofsharesownedorcontrolledbyashareholderismultipliedbythenumberofdirectorstobeelected.Eachshareholdercandistributethesevotesashewishesoveroneormorecandidates.•StraightvotingworkslikeaU.S.politicalelection.–Shareholdershaveasmanyvotesassharesandeachpositionontheboardhasitsownelection.–Atendencytofreezeoutminorityshareholders.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-9Cumulativevs.StraightVoting:Example•Imagineafirmwithtwoshareholders:Mr.SmithandMs.Wesson.–Mr.Smithowns60%ofthefirm(=600shares)andMs.Wesson40%(=400shares).–Therearethreeseatsupforelectionontheboard.•Understraightvoting,Mr.Smithgetstopickallthreeseats.•Undercumulativevoting,Ms.Wessonhas1,200votes(=400shares×3seats)andMr.Smith1,800votes.•Ms.Wessoncanelectatleastoneboardmember.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-10ProxyVoting•Aproxyisthelegalgrantofauthoritybyashareholdertosomeoneelsetovotehisorhershares.•Forconvenience,theactualvotinginlargepubliccorporationsisusuallydonebyproxy.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-11Dividends•Unlessadividendisdeclaredbytheboardofdirectorsofacorporation,itisnotaliabilityofthecorporation.–Acorporationcannotdefaultonanundeclareddividend.•Thepaymentofdividendsbythecorporationisnotabusinessexpense.–Therefore,theyarenottax-deductible.•DividendsreceivedbyindividualshareholdersareforthemostpartconsideredordinaryincomebytheIRSandarefullytaxable.–Thereisanintra-corporatedividendexclusion.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.14-12ClassesofStock•Whenmorethanoneclassofstockexists,theyareusuallycreatedwithunequalvotingrights.•Manycompaniesissuedualclassesofcommonstock.Thereasonhastodowithcontrolofthefirm.•Lease,McConnell,andMikkelsonfoundthemarketpricesofstockswithsuperiorvotingrightst