Corporate Finance

CFA_LV2_Corp_F.hwp

 

Corporate Finance

 

[ Capital Budgeting ]

 

○ Cash Flow table

기초	영업 중	기말
- FCInv - NWCInv	+(S-O-D)(1-t) + D +(S-O)(1-t) + Dt	+BV of FCInv +세후 매각이익 +NWCInv

- CF ⇒ 증분 CF, 외부효과(cannibalization), 기회비용 but 매몰비용 ×

- WACC ⇒ 프로젝트 β 사용, MV비중 이용

 

○ 자본 할당

NPV	IRR	PI
가장 우월	unconventional CF ⇒ multiple IRR or No IRR	NPV = 0 → PI = 1 PV of CF / investment

 

○ Economic 분석

- Economic income = cash flow + change in MV (PV of CF) = cash flow - economic dep

- Economic profit = NOPAT - WACC × 기초BV

- Residual income = NI - 기초Equity × Re

- NOPAT = 세후영업이익 = EBIT × (1-t)

- MVA = PV of Economic profit

 

○ Risk 분석

- Sensitivity analysis ⇒ input을 20% 늘려보고, 줄여보고

- Scenario analysis ⇒ best/worst case, base case

- Simulation analysis (Monte Carlo simulation) ⇒ probability distribution

 

○ Inflation

- 인플레이션 = 할인율 상승 → 채무자 good & 채권자 bad, tax saving from dep. 감소

 

[Mergers and Acquisitions]

 

○ HHI

- 시장 참여자들의 시장점유율의 제곱의 합

- 절대치 : 1000 / 1800

- 변동치 : 100 / 50

 

○ Comparable approach ↔ DCF

- comparable company ⇒ 업계평균 multiple price × ( 1 + 평균 프리미엄 )

- comparable transaction ⇒ 인수가에 대한 multiple

 

○ Divestitures (분할)

- equity carve-out : 자회사 설립 with outside shareholders (public offering)

- spin-off : 자회사 설립 with parent company's shareholders (무상비례배분)

- split off : exchange, 모회사 주식 버리고 자회사 주식 받기

- liquidations : 청산

 

○ Takeover defense

Pre-offer

▪ poison pill : 주주의 신주염가매수권 ▪ poison put : 채권자의 상환청구권 ▪ restrictive takeover laws : 법으로 제한(강력한 antiturst law) ▪ restricted voting rights : 일정 지분률 초과에 대해 voting rights 무효화 ▪ supermajority voting provision for mergers : 과반수가 아닌 75% ▪ fair price amendment : 시장가 아닌 특정한 공식으로 산출 ▪ golden parachutes : 경영자에 막대한 보상

Post-offer

▪ "Just say no" defense : 적대감 표시 ▪ Litigation : 소송 ▪ Greenmail : 비싼 값으로 주식 되사기 (SK-소버린) ▪ Share repurchase : 자사주 사기, 주식 가격 상승(매수 비용 상승) ▪ Leveraged recapitalization : 부채로 자사주 사기(자본구조 변경) ▪ Crown jewel defense : 핵심 자산 매각 ▪ Pac-man defense : 역공격 ▪ White knight defense : 제3자의 우호지분 취득 ▪ White squire defense : 제3자의 소수지분 취득

 

[ Capital Structure ]

 

○ 연구

이론	Tax	Cost of financial distress	WACC	optimal
1958MM	×	×		irrelevant
1963MM	○	×		부채100%
Trade off	○	○		optimal

○ MM

- proposition 1 :

- proposition 2 :

 

○ Agency cost

- 경영자 (확증비용) vs. 주주 (감시비용)

- 주주 vs. 채권자

○ Pecking order

- 내부자본 → 부채 → 외부자본 (신주 발행)

 

[ Dividends and share repurchases: analysis ]

 

○ 배당 이론

이론	배당 효과
MM	irrelevant
Bird-in-hand	현재의 확실한 현금 > 미래의 불확실한 자본이득
Tax aversion	배당소득세 > 자본이득세 ⇒ 무배당

 

○ Information asymmetry

이론	배당 효과
dividend initiation	ambiguous
unexpected dividend increase	good
unexpected dividend decreases or omissions	bad

 

○ Dividend safety

- dividend payout ratio = dividends / net income

- dividend coverage ratio = net income / dividends

- FCFE coverage ratio = FCFE / (dividends + share repurchases)

 

○ Target payout ratio adjustment model

- expected dividend = previous dividend

+ expected increase in EPS × target payout ratio × adjustment factor

- adjustment factor = 1 / number of years over which the adjustment in dividends

will take place

○ Clientele effect

- the varying dividend preferences of different group of investors (ex. tax considerations)

 

 

[ Corporate Governance ]

 

○ Two major objectives

- eliminate or reduce conflicts of interests

- use company's assets in a manner consistent with the best interests of investors and other stakeholder

 

○ Best practices

- 75% independence board members

- CEO and chairman are separate positions

- directors knowledgeable/experienced, serve on only 2 or 3 boards

- annual elections (not staggered) ⇔ M&A defense

- evaluate/assess board annually

- meet annually without management

- independent directors with finance expertise on audit committee; meet auditors annually

- independent directors on nominating committee

- most senior manager pay tied to performance

- board use independent/outside counsel

- board approves related-party transactions

 

○ Risk of an ineffective corporate governance

- financial disclosure risk : information and disclosures that investors use as a basis for financial decisions are incomplete, misleading, or materially misstated.

- asset risk : managers and directors may use company assets inappropriately. (excessive compensation and perks）

- liability risk : management may enter into off-balance-sheet obligations that reduce the value of the shareholders' stake in the company.

- strategic policy risk : management may enter into transactions that may not be in the best interests of shareholders, but will provide benefits for management.