nyu damodaran applied corporate finance a user's manual 3e 課后習(xí)題答案

1、Chapter21.AnnualMeeting:Stockholdersmaynotshowupatannualmeetingsbeprovidedwithenoughinfmationtohaveeffectiveoversightoverincumbentmanagement.Inadditionthecpateterisoftentiltedtoprovideincumbentmanagerswiththeadvantageift

2、hereisacontestattheannualmeeting.BoardofDirects:Directsareoftenchosenbytheincumbentmanagers(ratherthanbystockholders)ownfewshareslacktheexpertiseinfmationtoasktoughquestionsofincumbentmanagers.2.(a)Anincreaseindividends:

3、Makeexistingdebtriskierreduceitsvalue.Bondholderscanprotectthemselvesbyconstrainingdividendpolicy.(b)Aleveragedbuyout:Iftheexistingdebtisnotrefinancedatthe“new”interestrateexistingbondholderswillfindthevalueoftheirholdin

4、gsareloweraftertheLBO.Bondholderscanprotectthemselvesbyingprotectiveputsintotheirdebtallowingthemtoputthebondsbacktothefirmreceivefacevalue.(c)Acquiringariskybusiness:Ifariskybusinessisacquiredexistingbondholdersmayfindt

5、hemselveswseoffsincetheunderlyingdebtisnowriskier.Bondholderscanprotectthemselvesbyrestrictinginvestmentpolicy.3.Thefactthatmarketsarevolatilebyitselfdoesnotimplythattheyarenotefficient.Iftheunderlyingvalueoftheinvestmen

6、tstradedinthemarketischangingalotfromperiodtoperiodpricesshouldbevolatile.Eveniftheunderlyingvalueisnotmovingasmuchaspricesarethefactthatmarketsmakemistakes(whichiswhatthenoiseis)doesnotimplythatthepricesarenotunbiasedes

7、timatesofvalue.Putanotherwayittakesmethanmistakesmadebymarketstoprovethatmarketsareinefficient.4.Theempiricalevidencedoesnotsupptthenotionthatallinvestsfocusonshttermresults.Inparticulartheevidencethathighgrowthstocksare

8、abletocommhighpriceearningsmultiplesthatstockpricesgouponaverageontheannouncementofR&Dmajinvestmentscanbeviewedasconsistentwithamarketwheresomeinvestsatleastfocusonthelongterm.5.Thisstrategyislikelytowkifhighermarketshar

9、eleadstohigherprofitscashflowsinthelongterm.Ifontheotherhthehighermarketshareisobtainedbycuttingpricessacrificinglongtermprofitabilitythestrategyisunlikelytowk.6.Iftheincumbentmanagementisefficientrunsthefirmfthebenefito

10、fexistingstockholdersantitakeoveramendmentswillhelpintwoways–(1)itmayrelievethemofthedistractionofunwantedtakeoverattemptsallowthemtofocusonmaximizingcashflowsvalueTheideaisthatbondholdersbyconvertingtheirbondsintoequity

11、wouldbeabletoparticipateintheupsidepotentialifstockholdersattempttoincreasetheriskinessofthefirm.Thiswoulddecreasetheincentivefstockholderstoexpropriatewealthfrombondholdersinthisfashion.14.Theproblemisnotentirelyresolve

12、dbythepassageofsuchlegislationbecauseithastobeenfcedenfcementoflawsisnotcostless.Furthermenotallsocialcostsareeasilyobservable(atleastatthetimethattheyarecreated)bythetimetheyareitmaybetoolate.15.Firstofallitisnotclearho

13、wdestructionofawellrunfirmwouldbedesirablefastockholderwhohastakenoverthefirm.Howeverevenifthiscouldhappenitisnotclearthatlegislationpreventinghostiletakeoversisthesolution.Thereasonfthisisthatsuchlegislationwouldalsound