現代企業資本結構概念講義(ppt 23頁)（英文版）

現代企業資本結構概念講義目錄：
1、The Capital-Structure Question and The Pie Theory
2、Maximizing Firm Value versus Maximizing Stockholder Interests
3、Financial Leverage and Firm Value: An Example
4、Modigliani and Miller: Proposition II (No Taxes)
5、Taxes
6、Summary and Conclusions

現代企業資本結構概念講義內容提要：
The Capital-Structure Question
There are really two important questions:
Why should the stockholders care about maximizing firm value? Perhaps they should be interested in strategies that maximize shareholder value.
What is the ratio of debt-to-equity that maximizes the shareholder’s value?
As it turns out, changes in capital structure benefit the stockholders if and only if the value of the firm increases.
The MM Propositions I & II (No Taxes)
Proposition I
Firm value is not affected by leverage
VL = VU
Proposition II
Leverage increases the risk and return to stockholders
rs = r0 + (B / SL) (r0 - rB)
rB is the interest rate (cost of debt)
rs is the return on (levered) equity (cost of equity)
r0 is the return on unlevered equity (cost of capital)
B is the value of debt
SL is the value of levered equity
Prospectus: Bankruptcy Costs
So far, we have seen M&M suggest that financial leverage does not matter, or imply that taxes cause the optimal financial structure to be 100% debt.
In the real world, most executives do not like a capital structure of 100% debt because that is a state known as “bankruptcy”.
In the next chapter we will introduce the notion of a limit on the use of debt: financial distress.
The important use of this chapter is to get comfortable with “M&M algebra”.

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