BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Capital Structure soru detayı:
SORU:
LMN and STU aretwo identical firms other than their capital structures. Both companies
generate EBIT of $10,000 and pay 20% corporate taxes. LMN is an unlevered firm with total equity of $100,000 and STU is a levered company with $50,000 of debt and $60,000 of the equity issue. The interest rate on STU’s borrowing is 10%.If we have 10% of the shares in both LMN and STU, let’s discuss the MM’s assumption that the value of the
levered firm is equal to the value of the unlevered firm plus the tax shield on debt (VL=VU+D*T).
CEVAP:
Value of STU (levered firm)=$50,000+$60,000=$110,000
Value of LMN (unlevered firm)=$100,000
Value of LMN=Value of STU+$10,000=$100,000+ ($50,000*0.20)
If you have 10% of the shares of LMN (unlevered firm), your shares will be worth:
0.10*$100,000=$10,000 and your share of the income will be:
0.10*$10,000=$1,000
If you have 10% of the shares of STU (levered firm), your shares will be worth:
0.10*($110,000-$50,000)= 0.10*$60,000=$6,000 and your share of the income will be:
0.10*($10,000-(0.06*$50,000))= 0.10*($10,000-$3,000)=$700