[CFA考试] 请教CFA 1级Reading 36 - Cost of Capital的一题 [推广有奖]

#CFA 1级Reading 36 教材Practice problem的第22题#

BorisDuarte, CFA, covers initial public offerings for Zellweger Analytics, an independent research firm specializing in global small-cap equities. He has been asked to evaluate the upcoming new issue of TagOn, a US-based business intelligence software company. The industry has grown at 26 percent per year for the previous three years. Large companies dominate the market, but sizable “pure-play” companies such as Relevant, Ltd., ABJ, Inc., and Opus Software Pvt.Ltd also compete. Each of these competitors is domiciled in a different country, but they all have shares of stock that trade on the US NASDAQ. The debt ratio of the industry has risen slightly in recent years.

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Duarte uses the information from the preliminary prospectus for TagOn’s initial offering. The company intends to issue 1 million new shares. In hisconversation with the investment bankers for the deal, he concludes the offering price will be between $7 and $12. The current capital structure of TagOn consists of a $2.4 million five-year non-callable bond issue and 1million common shares. Other information that Duarte has gathered:

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22.  The marginal cost of capital for TagOn, based on an average asset beta of 2.27 for the industry and assuming that new stock can be issued at $8 per share, is closest to:

A.      20.5 percent.

B.      21.0 percent.

C.      21.5 percent.

答案如下：

C is correct.

For debt: FV= 2,400,000; PV = 2,156,000; n = 10; PMT = 150,000

Solve for i.i = 0.07748. YTM = 15.5%

Before-taxcost of debt = 15.5%

Market valueof equity = 1 million shares outstanding + 1 million newly issued shares = 2million shares at $8 = $16 million

Total marketcapitalization = $2.156 million + $16 million = $18.156 million

Levered beta= 2.27 {1 + [(1 − 0.23)(2.156/16)]} = 2.27 (1.1038) = 2.5055

Cost ofequity = 0.0525 + 2.5055 (0.07) = 0.2279 or 22.79%

Debt weight =$2.156/$18.156 = 0.1187

Equity weight= $16/$18.156 = 0.8813

TagOn’s MCC     = [(0.1187)(0.155)(1 − 0.23)] + [(0.8813)(0.2279)]

= 0.01417 +0.20083

= 0.2150 or21.50%

疑问：

Marginal cost of capital is the cost of the last new dollar of capital a firm raises.这里只raise equity，为什么要加cost of debt？weight of equity不应该是1吗？

谢谢！