公司金融总结 期末复习题

CHAPTER 1. Issuing Securities to the Public✓Public and Private Sources of Capital: registered securities（registered with SEC）vs bank loans or private placements私募（cannot be traded on public markets）.✓Management gets the approval of the Board of Directors.The firm prepares and files a registration statement with theSEC.The SEC studies th e registration statement during the waiting period. The firm may distribute copies of a preliminary pr ospectus.The firm prepares and files an amended registration statement with the SEC if needed.If everything is copasetic with the SEC, a price is set and a full-fledged selling effort gets underway. A final prospectus must accompany the delivery of securities.Marketi ng the issue: road shows and tombstone advertisements are used during and after the waiting period.✓Seasoned Offering (SEO)。

All IPOs are cash offers. SEOs can be made by using either cash offers or rights offers. Almost all debt is sold in general cash offerings.✓There are three methods for issuing securities for cash: Firm Commitment(underwrite), Best Efforts, Dutch Auction (uniform price auction）✓Green Shoe provision gives the members of the underwriting group the option to purchase additional shares at the offering price.✓nonventure equity investment:Distressed investmentMezzanine capitalLeverage buyout✓Venture CapitalWealthy families (Rockefeller family)A number of private partnerships and corporations (American Research and Development, ARD)Venture capital subsidiaries of large industrial or financial corporationsAngel investors (informal venture capitalists)✓Seed-Money Stage, Start-Up, First-Round Financing.....Fourth-Round Financing (bridge financing).CHAPTER 2. Long-Term Debt✓The registration statement for a public issue of bonds must include an indenture ( The basic terms of the bonds, A description of property used as security, The sinking funds arrangement, The call provisions, Covenants), a written agreement between the borrower and a trust company.✓The ownership (name) of the owner of the a registered bond is recorded, while that of a bearer bond is not.✓Accrued interest 应计利息collateral抵押品✓Clean price: The quoted price, which is the dirty price net of accrued interest✓Investment Grade Bond✓Any bond with a rating less than and equal to an S&P “BB”or a Moody’s “Ba”is a junk bond (high-yield bond).✓If an investor has a fix amount of liability in the future, zero coupon bond reduces the interest risk.✓Zero coupon bonds save tax payments for the investors.✓Life insurance companies and pension funds dominate the private placement segment of the bond market. Commercial banks are significant participants in the term loan market.✓A syndicated loan may be a line of credit.CHAPTER 3. Leasing✓Operating Leases VS Financial Leases (Capital Leases)✓Leveraged Leases: Lessor borrows from lender to partially finance purchase. The lenders typically use a nonrecourse loan. This means that the lessor is not obligated to the lender in case of a default✓The value of guarantee is the value of a put option on the assets of the firm.✓When the equity has a delta significantly smaller than 1, any value created will go partially to bondholders.✓Diversification works in the sense that it reduces the volatility of the firm’s return on assets.✓Financial merger creates value only if the combined firm bears more debt after merger to take advantage of more tax shield.✓In an efficient market without frictions (tax and bankruptcy cost), a convertible bond is just a package of straight bond and an option to buy common stocks.✓If there is no tax and bankruptcy cost convertible debt does not have ex ante advantage.CHAPTER 4. Pricing DerivativesF1 – F0, on date 1 F2 – F1, on date 2 …..FT-1 – FT-2, on date T-1 ST – FT-1, on date T✓ short position of an option is referred to as writing an option.✓ The payoff of a call at T: Max[0, ST-T] The payoff, at T, of writing a call : -Max[0, ST-T] ✓ The payoff of a put at T: Max[0, K-ST] The payoff, at T, of writing a put : -Max[0, K-ST]✓ In the money: the underlying asset of a call (or put) option has a current price, St , that is greater (less) than the strike price. ✓ The value of a forward contract,f = S0-K/(1+rf)T = S0-PV(K)✓ ✓ Arbitrage when a call sells for its exercise value.✓ Solution: short sell an Intel stock (+$45), buy the American option (-$5) and put the remaining cash ($40) on risk free asset. ✓ When stock price is higher, a unit change in the underlying stock price generates a larger increase in the value of call option than when stock price is lower.✓ When the stock price is extremely large, the call will be almost surely exercised. In this case an option is like a forward contract.✓ Delta: The sensitivity of option value to stock price changesThe Black-Scholes formula (9) and (10) shows that the delta of a call option is N(d1). ✓ Delta as the number of shares of stock in a tracking portfolio✓ Convertible Debt versus Straight Debt✓ A firm is better off having issued convertible debt instead of straight debt if the future stock price falls because convertible debt generally has lower interest .✓ A firm is worse off having issued convertible debt instead of straight debt if the future stock price goes up. ✓ Convertible Debt versus Common Stock✓ A firm is better off having issued convertible debt instead of common stock if the future stock price rises because generally the conversion price of convertible debt is higher than stock price at issuing time.✓ A firm is worse off having issued convertible debt instead of common stock if the future stock price goes down. ✓CHAPTER 6✓ Debt overhang problem (underinvestment problem): Equity holders may under invest - that is, pass up profitable investments because the film's existing debt captures most of the project ’s benefits.✓ Asset substitution problem: Equity holders will have a tendency to take on overly risky projects, even when they have negative NPV.✓ Shortsighted investment problem: Equity holders will have a tendency to pass up profitable investment projects that pay off over a long time horizon in favor of less profitable projects that pay off more quickly.✓ Reluctance to liquidation problem: Equity holders may want to keep a firm operating when its liquidation value exceeds itsoperating value.0S c∂∂)()(210d N Ked N S c Tr f --=)()(102d N S d N Ke p T r f---=-TT r K S d f σσ)2()ln(201++=Td TT r K S d f σσσ-=-+=1202)2()ln(。