题目
SebCoe plc, a British firm, is evaluating an investment in a ￡50 million project that will be financed with 50% debt and 50% equity. Management has already determined that the NPV of this project is ￡5 million if it uses internally generated equity. However, if the company uses external equity, it will incur flotation costs of 5.8%. Assuming flotation costs are not tax deductible, the NPV using external equity would be:
选项
A.less than ￡5 million because we would discount the cash flows using a higher weighted average cost of capital that reflects the flotation costs.
B.￡3.55 million because flotation costs reduce NPV by $1.45 million.
C.￡5 million because flotation costs have no impact on NPV.
答案
B
解析
Since the project will be financed with 50% equity, the company will issue ￡25 million of new stock. The flotation cost of external equity is (0.058 × 25,000,000) = 1,450,000. The NPV ofthe project using external equityis the NPV using internal equity lessthe flotation cost. Adjusting the cost of capital toreflect the flotation cost is not a preferred way to account for flotation costs.由于该项目将以50%的股权融资，公司将发行￡2500万股新股。外部股权的上市成本为（0.058×25000000）=1450000。使用外部股权的项目净现值是使用内部股权的净现值减去浮动成本。调整资本成本以反映浮动成本不是解释浮动成本的首选方法。