Principles of Corporate Finance_ 12th Edition

492 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 492 09/30/15 12:07 PM additional value. We were rea ...

Chapter 19 Financing and Valuation 493 bre44380_ch19_491-524.indd 493 09/30/15 12:07 PM We calculated the market value of equity ...

494 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 494 09/30/15 12:07 PM stream of earnings and cash f ...

Chapter 19 Financing and Valuation 495 bre44380_ch19_491-524.indd 495 09/30/15 12:07 PM Review of Assumptions In order to discou ...

496 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 496 09/30/15 12:07 PM and think, “Aha! My firm has ...

Chapter 19 Financing and Valuation 497 bre44380_ch19_491-524.indd 497 09/30/15 12:07 PM hardest part of the exercise) and discou ...

498 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 498 09/30/15 12:07 PM ∙ Income is calculated after ...

Chapter 19 Financing and Valuation 499 bre44380_ch19_491-524.indd 499 09/30/15 12:07 PM PV at year 0 = _____^1 1.09^6 × 113.4 = ...

500 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 500 09/30/15 12:07 PM And to find the value per sha ...

Chapter 19 Financing and Valuation 501 bre44380_ch19_491-524.indd 501 09/30/15 12:07 PM expense. Finally, you discount the free ...

502 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 502 09/30/15 12:07 PM When net working capital is t ...

Chapter 19 Financing and Valuation 503 bre44380_ch19_491-524.indd 503 09/30/15 12:07 PM But the weighted-average cost of capital ...

504 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 504 09/30/15 12:07 PM because of financial risk, bu ...

Chapter 19 Financing and Valuation 505 bre44380_ch19_491-524.indd 505 09/30/15 12:07 PM Step 1. Sangria’s current debt ratio is ...

506 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 506 09/30/15 12:07 PM The Importance of Rebalancing ...

Chapter 19 Financing and Valuation 507 bre44380_ch19_491-524.indd 507 09/30/15 12:07 PM The Modigliani–Miller Formula, Plus Some ...

508 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 508 09/30/15 12:07 PM The idea behind adjusted pres ...

Chapter 19 Financing and Valuation 509 bre44380_ch19_491-524.indd 509 09/30/15 12:07 PM APV is the sum of base-case value and PV ...

510 Part Five Payout Policy and Capital Structure bre44380_ch19_491-524.indd 510 09/30/15 12:07 PM ❱ TABLE 19.2 APV valuation of ...

Chapter 19 Financing and Valuation 511 bre44380_ch19_491-524.indd 511 09/30/15 12:07 PM APV is particularly useful when the debt ...