注册
 找回密码
 注册

财务圈

搜索
中华会计网校

注会综合阶段英语水平提升班——第六单元4

t-admin154 网校老师 发表于 2017-10-29 16:31:07 | 评论:0  查看:519次 [注会英语]
> 下载该文档 (更多资料请加备考QQ群:202534086(报班优惠券发放))
Unit 6         Financial management
3.6 Other long-term financing
Leases can be separated into two types. Though operating leases allow the lessee to use the equipment, ownership remains with the lessor. Although the lessor in a financial lease legally owns the equipment, the lessee maintains effective ownership.
租赁包括两类。经营租赁下承租人使用设备,出租人拥有所有权。融资租赁下出租人从法律上拥有设备,但承租人保持对设备的有效所有权。
A warrant gives the holder the right to buy shares of common stock at an exercise price for a given period.
认股权证是公司向股东发放的一种凭证,授权其持有者在一个特定期间以特定价格购买特定数量的公司股票。
A convertible bond is a combination of a straight bond and a call option. The holder can give up the bond in exchange for shares of stock.
可转换债券,是债券和看涨期权的一种组合,它在一定期间内依据约定的条件可以转换成普通股。
Practice question:
G Brown is an established, listed company producing a range of central heating systems.  As a result of increasing demand for its products, the directors have decided to expand production, and therefore to raise more long term finance.
Required:
Discuss the main factors which should be taken into account when choosing between long-term loan capital and ordinary share capital.
Sample answer:
Factors to consider when choosing between debt and equity:
Cost
[size=10.5000pt]The cost of equity is higher over the longer term than the cost of loans. [size=10.5000pt]This is because equity is a riskier form of investment for the investor. [size=10.5000pt]Moreover, loan interest is tax deductible whereas dividend payments are not. [size=10.5000pt]However, when profits are poor, there is no obligation to pay equity shareholders whereas the obligation to pay lenders will continue.
从长期来看,权益融资成本要高于债务融资成本。
Financial risk
[size=10.5000pt]Loan capital increases the level of risk to equity shareholders who will in turn require higher rates of return. [size=10.5000pt]If the level of gearing is high in relation to industry norms the credit standing of the business may be affected, although a highly geared firm may achieve high returns if the ROCE is higher than the cost of servicing the loans.
债务融资增加了股东的风险,因此股东会要求更高的回报。高于行业标准的债务比率会影响企业的信用状况,但同时高负债企业如果ROCE 高于债务成本,也会获得高收益。
Cash flow
[size=10.5000pt]If the company is not going to be a good cash generator for a while, then it is likely that equity will be more suitable.
Security (抵押)
[size=10.5000pt]If a company has good security available, then it may be able to raise more debt.
Control
[size=10.5000pt]Issuing equity may change control whilst issuing debt will not impact upon control.
Business risk
[size=10.5000pt]If business risk is high and /or operational gearing is high, then high levels of debt should be avoided.
Amount
[size=10.5000pt]Raising small amounts by equity is not normally cost effective(成本收益原则).
Issue
[size=10.5000pt]Debt is normally cheaper, easier, and quicker to raise, and has more certainty.

 评论返回列表
会计咨询

零基础入门
学习资料包
免费领取

微信公众号微信:exam77
优惠券

快速回复 返回顶部 返回列表