公司理财 罗斯 Ross 第9版英文版学习笔记 59页

Corporate Finance
Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe
Chapter 1 Introduction to Corporate Finance.....................................................................2
Chapter 2 Accounting Statements and Cash Flow..............................................................3
Chapter 3 Financial Markets and NPV: First Principles of Finance...................................6
Chapter 4 Net Present Value...............................................................................................6
Chapter 5 How to Value Bonds and Stocks........................................................................7
Chapter 6 Some Alternative Investment Rules...................................................................8
Chapter 7 NPV and Capital Budgeting...............................................................................9
Chapter 8 Strategy and Analysis in Using NPV...............................................................10
Chapter 9 Capital Market Theory.....................................................................................10
Chapter 10 Return and Risk: CAPM................................................................................10
Chapter 11 An Alternative View of Risk and Return: APT.............................................11
Chapter 12 Risk, cost of Capital, and Capital Budget......................................................13
Chapter 13 Corporate-financing Decisions and Efficient Capital Market........................15
Chapter 14 Long-Term Financing: An Introduction.........................................................18
Chapter 15 Capital Structure: Basic Concepts..................................................................20
Chapter 16 Capital Structure: Limits to the Use of Debt..................................................21
Chapter 17 Valuation and Capital Budgeting for the Levered Firm.................................26
Chapter 18 Dividend policy: Why Does it Matter?..........................................................27
Chapter 19 Issuing Securities to the Public......................................................................31
Chapter 20 Long-Term Debt.............................................................................................37
Chapter 21 Leasing...........................................................................................................41
Chapter 22 Options and Corporate Finance: Basic Concepts...........................................45
Chapter 23 Options and Corporate Finance: Extensions and Applications......................47
Chapter 24 Warrants and Convertibles.............................................................................49
Chapter 25 Derivatives and Hedging Risk.......................................................................51
Chapter 30 Mergers and acquisitions................................................................................53
Chapter 31 Financial Distress...........................................................................................57

Chapter 1 Introduction to Corporate Finance
1. Balance-sheet model of the firm:
I. left-hand side of the sheet: in what long-lived assets should the firm invest? – capital budget.
II. Right-hand side: how can the firm raise cash for required capital expenditures? – capital structure.
III. Net working capital = current asset – current liabilities: how should short-term operating cash flows be managed?
2. a firm sold gold for $10 and has yet to collect from the customer. The cost is $9:
Income statement:
Accounting view: profit = 10-9=1
Corporate finance view: cash inflow = 0; cash outflow = -9.
3. the sole proprietorship\
I. it is the cheapest business to form.
II. It pays no corporate income taxes. All profits of the business are taxed as individual income.
III. It has unlimited liability for business debts and obligations. No distinction is made b/w personal and business assets.
4. the partnership:
I. Partnerships are usually inexpensive and easy to form.
II. General partners have unlimited liability for all debts. The general partnership is terminated when a general partner dies or withdraws. It is difficult for a partnership to transfer ownership without dissolving.
The advantage is the cost of getting started. The disadvantages are: 1) unlimited liability, 2) limited life of the enterprise, and 3) difficulty of transferring ownership. These three disadvantages lead to 4) the difficulty of raising cash.
5. the corporation: limited liability, ease of ownership transfer, and perpetual succession are the major advantages; Disadvantage: government taxes corporate income.
6. agency costs: the cost of resolving the conflicts of interest b/w managers and shareholders are special types of costs.
Residual losses are the lost wealth of the shareholders due to divergent behavior of the managers.
7. G. Donaldson concluded that managers are influenced by two basic motivations:
I. survival.
II. Independence and self-sufficiency: this is the freedom to make decisions without encountering external parties or depending on outside financial markets. The Donaldson interviews suggested that managers do not like to issue new shares of stock. Instead, they like to be able to rely on internally generated cash flow.
III. Therefore, the basic financial objective of managers: the maximization of corporate wealth. Corporate wealth is that wealth over which management has effective control. Corporate wealth is not necessarily shareholder wealth.