Đang tải... (xem toàn văn)
The Adjusted Present Value Approach 1 Firm Valuation: The Adjusted Present Value Approach The adjusted present value (APV) approach is the one to firm valuation in which the entire firm is valued by adding the marginal impact of debt on value to the unlevered firm value. In the process of looking at firm valuation, we also look at how leverage may or may not affect firm value. We note that in the presence of default risk, taxes, and agency costs, increasing leverage can sometimes increase firm value and sometimes decrease it. In fact, we argue that the optimal financing mix for a firm is the one that maximizes firm value.
Adjusted Present Value (APV) Approach Valuation: 중앙대학교 경영학부 박창헌 교수 The Adjusted Present Value Approach Firm Valuation: The Adjusted Present Value Approach The adjusted present value (APV) approach is the one to firm valuation in which the entire firm is valued by adding the marginal impact of debt on value to the unlevered firm value In the process of looking at firm valuation, we also look at how leverage may or may not affect firm value We note that in the presence of default risk, taxes, and agency costs, increasing leverage can sometimes increase firm value and sometimes decrease it In fact, we argue that the optimal financing mix for a firm is the one that maximizes firm value The Adjusted Present Value Approach The Value of the Unlevered Firm The Present Value of Tax Benefits The Present Value of Expected Bankruptcy Costs Credit Ratings by Agencies, Compared Credit Ratings Explained http:// www.interest.co.nz Example: Sovereign Debt Ratings Rating Agencies, c Dec 2014 http://blog.thomsonreuters.com/index.php/tag/credit-ratings/ Estimating the Probability of Bankruptcy There are two basic ways in which the probability of bankruptcy can be estimated indirectly One is to estimate a bond rating and use the empirical estimates of default probabilities for the rating For instance, Table 15.2, extracted from a study by Altman, summarizes the probability of default over 10 years by bond rating class in using the 1999 to 2008 time period.6 Analyzing the Capital Structure (Disney Example) 59 Analyzing the Capital Structure (Disney Example) 60 Default Risk, OI, and Optimal Leverage 61 Adjusted Present Value and Financial Leverage 62 Adjusted Present Value and Financial Leverage 63 Adjusted Present Value and Financial Leverage 64 APV Approach to Optimal Capital Structure 65 APV Approach to Optimal Capital Structure 66 APV Approach to Optimal Capital Structure 67 APV Approach to Optimal Capital Structure 68 APV Approach to Optimal Capital Structure 69 APV Approach to Optimal Capital Structure 70 Piecewise Valuation 71 Benefits and Limitations of the APV Approach 72 This work is protected by copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted The work and materials from it should never be made available to students except by instructors using the accompanying texts published by Kaplan, Wiley, McGraw-Hill, etc in their classes All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials ! 73 [...]... Example: Value of a Leveraged Deal 16 Example: Value of a Leveraged Deal 17 Example: Value of a Leveraged Deal 18 Example: Value of a Leveraged Deal 19 APV without Bankruptcy Costs 20 Cost of Capital [FCFF] vs APV Approach 21 Cost of Capital [FCFF] vs APV Approach 22 The Effect of Leverage on Firm Value 23 The Effect of Leverage on Firm Value 24 WACC, Firm Value, and Leverage 25 WACC, Firm Value, and... 23 The Effect of Leverage on Firm Value 24 WACC, Firm Value, and Leverage 25 WACC, Firm Value, and Leverage 26 WACC, Firm Value, and Leverage 27 Steps in Cost of Capital Approach 28 Steps in Cost of Capital Approach 29 Steps in Cost of Capital Approach 30 Steps in Cost of Capital Approach 31 Analyzing the Capital Structure (Disney Example) 32 Analyzing the Capital Structure (Disney Example) 33 Analyzing