[经济学]财务管理双语习题解答

[经济学]财务管理双语习题解答内容摘要：

value of the firm’s bonds should increase. b. Dividends are paid from earnings after bondholders and the government have been paid. A dividend increase decreases the firm’s addition to Answers and Solutions: 1 7 retained earnings and subsequently lowers its growth rate。 however, shareholders receive more dividends so the effect on stock price is indeterminate. If the firm’s stock price increases as current management believes it will, this may cause some bondholders to sell their bonds and buy the firm’s stock to earn a higher return. So, the proposed dividend increase may cause a decline in the value of the firm’s existing bonds. c. Yes, assuming that management has performed the correct analysis it should undertake projects/actions that will increase the firm’s stock price. Stockholder wealth maximization is the goal of management. d. Bondholders can take the following actions to protect themselves against managerial decisions that reduce bond values: 1. Place restrictive covenants in debt agreements. 2. Charge a higherthannormal interest rate to pensate for the risk of possible exploitation. 3. Refuse to deal with management entirely. Firms that deal unfairly with creditors either lose access to the debt markets or are saddled with high interest rates and restrictive covenants, all of which are detrimental to shareholders. 114 a. Increasing corporate tax rates and reducing individual tax rates will cause the firm to remain as an unincorporated partnership. In addition to higher corporate tax rates, corporations are exposed to double taxation. b. By increasing environmental and labor regulations to include firms with 50+ employees, this firm will choose to remain an unincorporated partnership due to the additional costs it would have to bear if it operated as a corporation. 115 Earnings per share in the current year will decline due to the cost of the investment made in the current year and no significant performance impact in the short run. However, the pany’s stock price should increase due to the significant cost savings expected in the future. CINTEGRATED CASE Integrated Case: 1 8 Take a Dive Financial Management Overview 11 KATO SUMMERS OPENED TAKE A DIVE 17 YEARS AGO。 THE STORE IS LOCATED IN MALIBU, CALIFORNIA, AND SELLS SURFINGRELATED EQUIPMENT. TODAY, TAKE A DIVE HAS 50 EMPLOYEES INCLUDING KATO AND HIS DAUGHTER AMBER, WHO WORKS PART TIME IN THE STORE TO HELP PAY FOR HER COLLEGE EDUCATION. KATO’S BUSINESS HAS BOOMED IN RECENT YEARS, AND HE IS LOOKING FOR NEW WAYS TO TAKE ADVANTAGE OF HIS INCREASING BUSINESS OPPORTUNITIES. ALTHOUGH KATO’S FORMAL BUSINESS TRAINING IS LIMITED, AMBER WILL SOON GRADUATE WITH A DEGREE IN FINANCE. KATO HAS OFFERED HER THE OPPORTUNITY TO JOIN THE BUSINESS AS A FULLFLEDGED PARTNER. AMBER IS INTERESTED, BUT SHE IS ALSO CONSIDERING OTHER CAREER OPPORTUNITIES IN FINANCE. RIGHT NOW, AMBER IS LEANING TOWARD STAYING WITH THE FAMILY BUSINESS, PARTLY BECAUSE SHE THINKS IT FACES A NUMBER OF INTERESTING CHALLENGES AND OPPORTUNITIES. AMBER IS PARTICULARLY INTERESTED IN FURTHER EXPANDING THE BUSINESS AND THEN INCORPORATING IT. KATO IS INTRIGUED BY HER IDEAS, BUT HE IS ALSO CONCERNED THAT HER PLANS MIGHT CHANGE THE WAY IN WHICH HE DOES BUSINESS. IN PARTICULAR, KATO HAS A STRONG COMMITMENT TO SOCIAL ACTIVISM, AND HE HAS ALWAYS TRIED TO STRIKE A BALANCE BETWEEN WORK AND PLEASURE. HE IS WORRIED THAT THESE GOALS WILL BE COMPROMISED IF THE COMPANY INCORPORATES AND BRINGS IN OUTSIDE SHAREHOLDERS. AMBER AND KATO PLAN TO TAKE A LONG WEEKEND OFF TO SIT DOWN AND THINK ABOUT ALL OF THESE ISSUES. AMBER, WHO IS HIGHLY ORGANIZED, HAS OUTLINED A SERIES OF QUESTIONS FOR THEM TO ADDRESS: A. WHAT KINDS OF CAREER OPPORTUNITIES ARE OPEN TO FINANCE MAJORS? ANSWER: [SHOW S11 AND S12 HERE.] CAREER OPPORTUNITIES FOR FINANCE MAJORS EXIST IN THREE INTERRELATED AREAS: (1) MONEY AND CAPITAL MARKETS, WHICH DEALS WITH SECURITIES MARKETS AND FINANCIAL INSTITUTIONS。 INTEGRATED CASE Integrated Case: 1 9 (2) INVESTMENTS, WHICH FOCUSES ON THE DECISIONS OF BOTH INDIVIDUAL AND INSTITUTIONAL INVESTORS AS THEY CHOOSE SECURITIES FOR THEIR INVESTMENT PORTFOLIOS。 AND (3) FINANCIAL MANAGEMENT, OR ―BUSINESS FINANCE,‖ WHICH INVOLVES THE ACTUAL MANAGEMENT OF FIRMS. IN THE MONEY AND CAPITAL MARKETS AREA, MANY FINANCE MAJORS GO TO WORK FOR FINANCIAL INSTITUTIONS, INCLUDING BANKS, INSURANCE COMPANIES, MUTUAL FUNDS, AND INVESTMENT BANKING FIRMS. FINANCE GRADUATES WHO GO INTO INVESTMENTS OFTEN WORK FOR A BROKERAGE HOUSE EITHER IN SALES OR AS A SECURITY ANALYST. OTHERS WORK FOR BANKS, MUTUAL FUNDS, OR INSURANCE COMPANIES IN THE MANAGEMENT OF THEIR INVESTMENT PORTFOLIOS。 FOR FINANCIAL CONSULTING FIRMS THAT ADVISE INDIVIDUAL INVESTORS OR PENSION FUNDS ON HOW TO INVEST THEIR FUNDS。 FOR AN INVESTMENT BANK WHOSE PRIMARY FUNCTION IS TO HELP BUSINESSES RAISE NEW CAPITAL。 OR AS A FINANCIAL PLANNER WHOSE JOB IS TO HELP INDIVIDUALS DEVELOP LONGTERM FINANCIAL GOALS AND PORTFOLIOS. THE JOB OPPORTUNITIES IN FINANCIAL MANAGEMENT RANGE FROM MAKING DECISIONS REGARDING PLANT EXPANSIONS TO CHOOSING WHAT TYPES OF SECURITIES TO ISSUE TO FINANCE EXPANSION. FINANCIAL MANAGERS ALSO HAVE THE RESPONSIBILITY FOR DECIDING THE CREDIT TERMS UNDER WHICH CUSTOMERS MAY BUY, HOW MUCH INVENTORY THE FIRM SHOULD CARRY, HOW MUCH CASH TO KEEP ON HAND, WHETHER TO ACQUIRE OTHER FIRMS, AND HOW MUCH OF THE FIRM’S EARNINGS TO PLOW BACK INTO THE BUSINESS VERSUS TO PAY OUT AS DIVIDENDS. B. WHAT ARE THE PRIMARY RESPONSIBILITIES OF A CORPORATE FINANCIAL STAFF? ANSWER: [SHOW S13 AND S14 HERE.] THE FINANCIAL MANAGER’S TASK IS TO ACQUIRE AND USE FUNDS SO AS TO MAXIMIZE THE FIRM’S VALUE. SPECIFIC ACTIVITIES INCLUDE: (1) FORECASTING AND PLANNING, (2) MAKING MAJOR IN。