Влияние нерыночного долгового финансирования на стоимость капитала и ценность компании

Rauf G. Ibragimov

Authors

Rauf G. Ibragimov Graduate School of Financial Management of the Academy of National Economy under the Government of Russia

Abstract

To make economically sound capital allocation decisions at the corporate level, and to evaluate current performance of the business units, we need a hurdle rate to distinguish between value creation and value destruction. This hurdle rate is the cost of capital, so the quality of managerial decisions depends directly on the quality of the cost of capital estimates. In the paper we analyze effect of the debt financing with nonmarket interest rate on the cash flows redistribution, firm’s capital structure and the firm value. We propose methodology to calculate the cost of levered equity and the weighted average cost of capital for the firm with subsidized debt, illustrate with a numerical example that all discounted cash flow value estimates match, and show consequences of applying incorrect approach to the cost of capital calculation.

Downloads

Download data is not yet available.

References

ЛИТЕРАТУРА НА РУССКОМ ЯЗЫКЕ

Брейли Р., Майерс С. 2004. Принципы корпоративных финансов. М.: Олимп-Бизнес.

Волков Д. Л. 2004. Управление стоимостью компании и проблема выбора адекватной модели оценки. Вестник С.-Петербургского ун-та. Серия Менеджмент (4): 79–98.

Ибрагимов Р. Г. 2006. О ценности активов и ее финансовой оценке. Корпоративный финансовый менеджмент (2): 23–34.

Лимитовский М. А. 2006. Модель влияния структуры капитала на ценность компании, основанная на реалистических предположениях. Корпоративный финансовый менеджмент (1): 36–48.

Модильяни Ф., Миллер М. 1999. Сколько стоит фирма? М.: Дело.

REFERENCES IN LATIN ALPHABET

Fernández P. 1999. Equivalence of the Different Discounted Cash Flow Valuation Methods. Different Alternatives for Determining the Discounted Value of Tax Shields and their Implications for the Valuation. Social Science Research Network, Paper No. 182308.

Fernández P. 2002. Valuation Methods and Shareholder Value Creation. Academic Press: San Diego, CA.

Fernández P. 2005 Equivalence of ten different methods for valuing companies by cash flow discounting. International Journal of Finance Education 1 (1): 141–168.

Harris R. S., Pringle J. J. 1985. Risk-adjusted discount rates extensions form the average — risk case. Journal of Financial Research 8 (3): 237–244.

Ibragimov R., Vélez-Pareja I. 2006. Subsidized Loan Financing and its Impact on the Cost of Capital and Levered Firm Value. A non-technical reply to “Adjustment of the WACC with Subsidized Debt in the Presence of Corporate Taxes: the N-period Case”. Social Science Research Network, Paper No. 928048.

Inselbag I., Kaufold H. 1997. Two DCF approaches for valuing companies under alternative financing strategies (and how to choose between them). Journal of Applied Corporate Finance 10 (1): 114–122.

Jennergren P. L. 2005. Technical note — loan subsidy valuation. The Engineering Economist 50 (1): 69–86.

Miles J. A., Ezzell J. R. 1980. The weighted average cost of capital, perfect capital markets and project life: A clarification. Journal of Financial and Quantitative Analysis 15 (3): 719–730.

Miller M. H. 1977. Debt and taxes. Journal of Finance 32 (2): 261–276.

Modigliani F., Miller M. 1958. The cost of capital, corporation finance and the theory of investment. American Economic Review 48 (3): 261–297.

Modigliani F., Miller M. 1963. Corporate income taxes and the cost of capital: A correction. American Economic Review 53 (3): 433–443.

Myers S. C. 1974. Interactions of corporate financing and investment decisions — implications for capital budgeting. Journal of Finance 29 (1): 1–25.

Ross S. A., Westerfield R. W., Jaffe J. J. 2002. Corporate Finance. 6th ed. McGraw-Hill: N. Y.

Shapiro A. C. 2005. Capital Budgeting and Investment Analysis. Pearson Prentice Hall.

Taggart R. A. 1991. Consistent valuation and cost of capital expressions with corporate and personal taxes. Financial Management 20 (3): 8–20.

Tham J., Vélez-Pareja I. 2002. An Embarrassment of Riches: Winning Ways to Value with the WACC. Social Science Research Network, Paper No. 145648.

Tham J., Vélez-Pareja I. 2004. Principles of Cash Flow Valuation. Elsevier Academic Press.

Tham J., Vélez-Pareja I. 2005. With Subsidized Debt How Do We Adjust the WACC? Social Science Research Network, Paper No. 680921.

Vélez-Pareja I., Tham J., Fernández V. 2005. Adjustment of the WACC with Subsidized Debt in the Presence of Corporate Taxes: The N-Period Case. Social Science Research Network, Paper No. 68836.