風險、成本與資本預算分析(ppt 49頁)（英文版）

風險、成本與資本預算分析目錄：
1、The、Cost、of、Equity、Capital
2、Estimation、of、Beta
3、Determinants、of、Beta
4、Extensions、of、the、Basic、Model
5、Estimating、Eastman、Chemical’s、Cost、of、Capital
6、Reducing、the、Cost、of、Capital

風險、成本與資本預算分析內容提要：
Example
Suppose the stock of Stansfield Enterprises, a publisher of PowerPoint presentations, has a beta of 2.5. The firm is 100% equity financed.
Assume a risk-free rate of 5% and a market risk premium of 10%.
What is the appropriate discount rate for an expansion of this firm?
Example
Suppose Stansfield Enterprises is evaluating the following independent projects. Each costs $100 and lasts one year.
Using the SML
An all-equity firm should accept projects whose IRRs exceed the cost of equity capital and reject projects whose IRRs fall short of the cost of capital.
Stability of Beta
Most analysts argue that betas are generally stable for firms remaining in the same industry.
That is not to say that a firm’s beta cannot change.
Changes in product line
Changes in technology
Deregulation
Changes in financial leverage
Using an Industry Beta
It is frequently argued that one can better estimate a firm’s beta by involving the whole industry.
If you believe that the operations of the firm are similar to the operations of the rest of the industry, you should use the industry beta.
If you believe that the operations of the firm are fundamentally different from the operations of the rest of the industry, you should use the firm’s beta.
Do not forget about adjustments for financial leverage.

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