Explain what ‘cost of equity’ and ‘cost of debt’ are.

1. Explain what ‘cost of equity’ and ‘cost of debt’ are.

The cost of equity is the return (often expressed as a rate of return) a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital. Firms need to acquire capital from others to operate and grow. Individuals and organizations who are willing to provide their funds to others naturally desire to be rewarded. Just as landlords seek rents on their property, capital providers seek returns on their funds, which must be commensurate with the risk undertaken.
  The cost of debt is relatively simple to calculate, as it is composed of the rate of interest paid. In practice, the interest-rate paid by the company can be modeled as the risk-free rate plus a risk component (risk premium), which itself incorporates a probable rate of default (and amount of recovery given default). For companies with similar risk or credit ratings, the interest rate is largely exogenous (not linked to the cost of debt), the cost of equity is broadly defined as the risk-weighted projected return required by investors, where the return is largely unknown. The cost of equity is therefore inferred by comparing the investment to other investments (comparable) with similar risk profiles to determine the "market" cost of equity. It is commonly equated using the capital asset pricing model formula (below), although articles such as Stulz 1995 question the validity of using a local CAPM versus an international CAPM- also considering whether markets are fully integrated or segmented (if fully integrated, there would be no need for a local CAPM).

2. cost of equity cost of debt 和require rate of return有什么联系

股本成本  债务成本 报酬率
判断投资项目是否可行，报酬率需大于等于成本率，项目才可行。

3. 请问两道财务管理的题

同问这个问题

4. 急！！！需中文译文：Agency costs of free cash flow, corporate finance and takeovers

给我面红旗吧！！！！！！！！！！！！！！！


Books
Fama, Eugene. 1976. “Foundations of Finance”. New York: Basic Books. ( 个人认为是最经典的书。写得好，讲得很清晰，有条不紊，读起来有意思。特别是基础不太好的同学，不可不读。)
Fama, Eugene., and Miller, Merton. 1972. “The Theory of Finance”. Holt, Rinehart and Winston. (又是一本Fama的书。也很经典，但没什么印象了。)
Campbell, J., Lo, A., and MacKinlay, A. 1997. “The Econometrics of Financial Markets”. Princeton: Princeton University Press. 
Cochrane, John, 2001. “Asset Pricing”. Princeton: Princeton University Press. (这就是号称“平生不读Cochrane, 自称Finance 也枉然”的Cochrane的大作。其实，你要是不做Asset Pricing，看懂前几个Chapters足够了。不太明白为什么这本书在中国这么火，莫非中国学生都做Asset pricing? 希望不要弄得又像大炼钢铁一样的结果。)
R. Haugen. “Modern Investment Theory”. Upper Saddle River NJ: Prentice-Hall, Inc. （有一定难度的书，不知道现在出到几版了。）
Elton, E., and Gruber, M. 1995. “Modern Portfolio Theory and Investment Analysis”, 5th Edition. New York: John Wiley & Sons, Inc. (也不太容易。)
Smith, C. 1990. “The Modern Theory of Corporate Finance”. 2nd-edition. McGraw-Hill. (对做corporate finance比较有用。这本书其实就是收录了比较早和比较经典的corporate finance方面的文章。有点像“XX文摘精华版”。现在价值不是很大，因为其中收录的许多文章后面的list里都有。) 

Asset Pricing, Long-term Performance and Market Efficiency
（这个我不在行，拣我知道的写。）
Cochrane, John. “New Facts in Finance”. Federal Reserve Bank of Chicago. (这是个通俗易读版。适合想要了解一下这个area, 又不想读很多数学的人。)
Breeden, Douglas T. 1979. “An Intertemporal Asset Pricing Model with Stochastic Consumption and Investment Opportunities”. Journal of Financial Economics 7, 265-296. (看不懂数学没有关系，关键是看懂intuition.)
Merton, Robert. 1973. “An Intertemporal Capital Asset Pricing Model”. Econometrica 41, 265-296. (这篇也一样，注重模型的intuition.)
Ross, S. 1976, “The Arbitrage Theory of Capital Asset Pricing,” Journal of Economic Theory 13, 341-360.
Sharpe, W. 1964. “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk”. Journal of Finance 19, 425-442.
Black, F. 1972. "Capital Market Equilibrium with Restricted Borrowing," Journal of Business 45, 444-455.
Fama, E. 1991. “Efficient Capital Markets: II”. Journal of Finance 46, 1575-1617. (很长一篇文章，内容又多，当时读得挺痛苦。)
Fama, E. 1970. “Efficient Capital Markets: A Review of Theory and Empirical Work”. Journal of Finance, 383-417.
Chordia, Tarun., and Swaminathan, Bhaskaran. 2000. “Trading Volume and Cross-autocorrelations in Stock Returns”. Journal of Finance 55, 913-935. 
Narasimhan, Jegadeesh., and Titman, Sheridan. 2001. “Profitability of Momentum Strategies: An Evaluation of Alternative Explanations”. Journal of Finance 56, 699-720.
Fama, E. and MacBeth, J. 1973. “Risk, Return, and Equilibrium: Empirical Tests”.Journal of Political Economy 91, 607-636. (大名鼎鼎的Fama-MacBeth regression 的出处。不过，Economists 好像并不买这个帐，觉得这种方法不make econometric sense. 吾也深有同感也。现在panel data等等都这么发达了，干嘛还死抱这种econometrics上面并不先进的方法不放呢？)
Chen, N., Roll, R., and Ross, S. 1986. “Economic Forces and the Stock Market: Testing the APT and Alternative Asset Pricing Theories”. Journal of Business 59, 383-403. (说是叫testing APT, 其实更像testing CAPM. 很有名的，看了就知道。)
Fama, E. and French, K. 1989. “Business Conditions and Expected Returns on Stocks and Bonds”. Journal of Financial Economics 25, 23-50. 
Fama, E. and French, K. 1992. “The Cross-Section of Expected Stock Returns”. Journal of Finance 47,? 427-465. 
Fama, E. and French, K. 1993. “Common Risk Factors in the Returns on Stocks and Bonds”. Journal of Financial Economics 33, 3-56. (这三篇是Fama-French 的经典三部曲。Three-factor model, five-factor model 就是由此而来。Pontiff 曾经抱怨过，他在Rochester当学生的时候曾想过做个类似的paper, 但老师们告诉他 “You can’t, because there is no theory...” 直到看到Fama-French的paper, 才感叹到，“只要人有名，有没有theory并不重要啊”。)
Kothari, S.P., Shanken, J., and Sloan, R. 1995. “Another Look at the Cross-Section of Expected Stock Returns”. Journal of Finance 50, 185-224. 
Lakonishok, J., Shleifer, A., and Vishny, R. 1994. “Contrarian Investment, Extrapolation, and Risk”. Journal of Finance 49, 1541-1578. 
Chan, L., Jegadeesh, N., and Lakonishok, J. 1995. “Evaluating the Performance of Value Versus Glamour Stocks: The Impact of Selection Bias”. Journal of Financial Economics 38, 269-296.
Lo, A. W., and MacKinlay, A. 1990. “Data-Snooping Biases in Tests of Financial Asset Pricing Models”. Review of Financial Studies, 3, 431-467. 
Lewellen J. 1999. "The Time-Series Relations among Expected Returns". Journal of Financial Economics 54, 5-43. (Lewellen 是个美国帅哥, 在MIT做得不错。为人比较能和人交往，presentation 做得很好，属于那种交流表达能力都很出色的人。)
Lewellen J., and Shanken, J. 2002. “Learning, Asset-Pricing Tests, and Market Efficiency”. Journal of Finance, 1113-1145.
Miller, Edward. 1977. “Risk, Uncertainty, and Divergence of Opinion”. Journal of Finance 32, 11651-1168. 
Jones, Charles M., and Lamont, Owen. 2002. “Short Sales Constraints and Stock Returns”. Journal of Financial Economics, 207-239.
Chen, Joseph., Hong, H., and Stein, J. 2002. “Breadth of Ownership and Stock Returns” Journal of Financial Economics, 171-205.
Dechow, Patricia., Hutton, A., Muelbroek, L., and Sloan, R. 2001. “Short Sellers, Fundamental Analysis, and Stock Returns”. Journal of Financial Economics 61, 77-106. (Dechow 和Sloan都是做Accounting的。据说因为合作得太多，两人走到了一起。)
Dichev, Ilia D., and Piotroski, J. 2001. “The Long-run Stock Returns Following Bond Ratings Changes”. Journal of Finance 56, 173-203. 
Ikenberry, David., and Ramnath, Sundaresh. 2002, “Underreaction to Self-selected News Events: The Case of Stock-splits”. Review of Financial Studies 15, 489-526. 
Titman, Sheridan. 2002. “Discussion of ‘Underreaction to Self-selected News Events: The Case of Stock-splits”. Review of Financial Studies 15, 527-531. 
Lakonishok, J., and Smidt, S. 1988. “Are Seasonal Anomalies Real? A Ninety-Year Perspective”. Review of Financial Studies 1, 403-427.
Lo, A., and MacKinlay, C. 1988. “Stock Market Prices Do Not Follow Random Walks: Evidence from a Simple Specification Test”. Review of Financial Studies 1, 41-66.
Keim, D., and Stambaugh, R. 1986. “Predicting Returns in the Stock and Bond Markets”. Journal of Financial Economics 17, 357-390. 
Ferson, W., and Harvey, C. 1991. “The Variation of Economic Risk Premiums”. Journal of Political Economy 99, 385-415.
Conrad, J., and Kaul, G. 1988, “Time Variation in Expected Returns”. Journal of Business, 409-426.
Loughran, T., and Ritter, J. 1996, “Long-Term Market Overreaction: The Effect of Low-Priced Stocks”. Journal of Finance, 1959-1970.
Boudoukh, J., Richardson, M., and Whitelaw, R. 1994. “A Tale of Three Schools: Insights on Autocorrelations of Short-Horizon Stock Returns”. Review of Financial Studies, 539-573.
Jegadeesh, Narasimhan., and Titman, Sheridan. 1993, “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency”. Journal of Finance 48, 65-91.
Daniel, K., and Titman, S. 1997. “Evidence of the Characteristics of Cross Sectional Variation in Stock Returns”. Journal of Finance, 1-33.
Jegadeesh, N., and Titman, S. 2001. "Profitability of Momentum Strategies: An Evaluation of Alternative Explanations". Journal of Finance 56, 699-720.
Lakonishok, J., Shleifer, A., and Vishny, R. 1994. “Contrarian Investment, Extrapolation, and Risk”. Journal of Finance 49, 1541-1578. 
Grinblatt, M., and Titman, S. 1989. “Portfolio Performance Evaluation: Old Issues and New Insights”. Review of Financial Studies 2, 393-422. 
Brown, S., Goetzmann, W., Ibbotson, R., and Ross, S. 1992. “Survivorship Bias in Performance Studies”. Review of Financial Studies 5, 553-580. 
Fama, Eugene., and French, Kenneth. 1996. “Multifactor Explanations of Asset-pricing Anomalies”. Journal of Finance 51, 55-84. 
Breeden, D., Gibbons, M., and Litzenberger, R. 1989. “Empirical Tests of the Consumption Oriented CAPM”. Journal of Finance 44, 231-262. 
Chan, K. C., Chen, N., and Hsieh, D. 1985. “An Exploratory Investigation of the Firm Size Effect”. Journal of Financial Economics 14, 451-471.
Amihud, Y., and Mendelson, H. 1986. “Asset Pricing and the Bid-Ask Spread”. Journal of Financial Economics 17, 223-249. 
Ritter, J. 1991. “The Long-Run Performance of Initial Public Offerings”. Journal of Finance, 3-27. (Ritter 是long-term performance的开山祖师，提到long-term performance不能不提Ritter。另外，他也是IPO的大家，对IPO感兴趣的可去他的网站看看。)
Loughran, T., and Ritter, J. 1995. “The New Issues Puzzle”. Journal of Finance, 23-51. (是上一篇的加强版。)
Schultz, P. 2003. “Pseudo Market Timing and the Long-Run Underperformance of IPOs,” Journal of Finance 58, 483-518. (90年代中期，关于long-term performance measurement的问题吵得热火朝天，至到现在。)
Barber, B., and Lyon, J. 1996. “Detecting Abnormal Operating Performance: The Empirical Power and Specification of Test Statistics”. Journal of Financial Economics 41, 359-99.
Banking
Diamond, Douglas W., and Dybvig, Philip H. 1983. “Bank Runs, Deposit Insurance,and Liquidity”, Journal of Political Economy, 91, 401 - 419. (Banking中的经典，虽然我不是做banking的，但认为不可不读)
Diamond, Douglas W. 1997. “Liquidity, Banks, and Markets”, Journal of Political Economy, 105, 928-956.
Calomiris, Charles W., and Kahn, Charles. 1991. “The Role of Demandable Debt in Structuring Optimal Banking Arrangements”. American Economic Review 81, 497-513.
Kashyap, Anil K., Rajan, Raghuram., and Stein, Jeremy C. 2002. “Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit-taking”. Journal of Finance 57, 33-73.
Allen, Franklin., and Gale, Douglas. 1998. “Optimal Financial Crises”. Journal of Finance, 53, 1245-1284.
Allen, Franklin. 2001. “Presidential Address: Do Financial Institutions Matter?”. Journal of Finance, 56, 1165 - 1175.
Allen, Franklin., and Santomero, Anthony M. 1998. “The Theory of Financial Intermediation”, Journal of Banking and Finance, 21, 1461-1485.
Billett, Matthew T., Flannery, Mark J., and Garfinkel, Jon A. 1995. “The Effect of Lender Identity on a Borrowing Firm's Equity Return”. Journal of Finance, 50, 699-718.

5. 怎样算出一个公司的债务成本？

债务成本仅指利用债务筹资的成本，比如银行借款、发行证券（股票是权益筹资）等，算出他们的利息和比筹资总额。

6. 如何计算WACC

WACC=(equity/(equity+debt))*cost of equity+(debt/(equity+debt))*cost of debt*(1-corporate tax rate)WACC=(E/V)*Re+(D/V)*Rd*(1-Tc)扩展资料：一、 WACC英文Weighted Average Cost of Capital的缩写。WACC代表公司整体平均资金成本，可用来衡量一个项目是否值得投资；项目的回报必须不低于WACC。 计算WACC时，先算出构成公司资本结构的各个项目如普通股、优先股、公司债及其他长期负债各自的资金成本或要求回报率，然后将这些回报率按各项目在资本结构中的权重加权，即可算出加权平均资本成本。计算公式=（债务/总资本）*债务成本*（1-企业所得税税率）+（资产净值/总资本）*股权成本，考虑税收时，债务成本=利息*（1-税率）二、 WACC被表示为百分比，象利息。 例如，如果公司比此与WACC 12%一起使用，意味着应该做仅投资，并且应该做所有投资， WACC给一回报更加高于12%。资本的费用为所有投资，为一家整个公司或为项目，是否是资本提供者将想接受回报的利率，如果他们在别处将投资他们的资本。 换句话说，资本的费用是opportunity cost的类型。三、 举例说明：公司的债务市值为4，500万元，优先股价值500万元，普通股市值为5，000万元，公司的债务收益率为9.5%。其优先股支付每股7.5元固定股息，目前定价为每股50元。该公司普通股的beta值为0.9，... 公司的债务市值为4，500万元，优先股价值500万元，普通股市值为5，000万元，公司的债务收益率为9.5%。其优先股支付每股7.5元固定股息，目前定价为每股50元。该公司普通股的beta值为0.9，无风险利率为4%，市场风险溢价为9.5%。鉴于公司面临30%的税收，计算公司的加权平均资本成本。即WACC。一、 首先，要计算WACC的话，需要用到公式：WACC=Rd*Xd*(1-Tc)+Rps*Xps+Re*Xe其中，Rd， Rps， Re — 债权成本、优先股成本和股权成本（普通股成本）；Xd， Xps， Xe — 债权比重、优先股比重和股权比重，例：Xd=(D)/(D+PS+E)；Tc — 公司税率。二、 下面开始计算债权成本、优先股成本和股权成本1，其中，债权成本（Rd）和优先股成本（Rps），一般采用银行贷款利率或优先股/债券到期收益率直接计算。即，Rd=9.5%然后我们要理解的是，优先股等价于永久权利，它的持有人将永远获得固定的收益。因此它的成本等于每期红利除以每股股价。即，Rps=7.5/50=15%2，要计算股权成本需要用到CAPM计算模型该模型计算公式为：Rei = Rf + MRP * Beta其中，Rf — 无风险利率； MRP — 市场（风险）溢价； Beta — 即公司beta系数。带入公式，得Re = 4% + 9.5% * 0.9 = 12.55%三、最后将求得的各个数据带入WACC公式中得，WACC = 0.095 * (1 - 0.3) * (4500/(4500+500+5000)) + 0.15 * (500/(4500+500+5000)) + 0.1255 * (5000/(4500+500+5000)) = 0.10 = 10%

7. 你知道哪些财务方面的英语，或者相关网站？

business   企业 商业 业务

financial risk  财务风险

sole proprietorship  私人业主制企业

partnership   合伙制企业

limited partner  有限责任合伙人

general partner  一般合伙人

separation of ownership and control 所有权与经营权分离

claim  要求 主张 要求权

management buyout  管理层收购

tender offer  要约收购

financial standards  财务准则

initial public offering  首次公开发行股票

private corporation  私募公司 未上市公司

closely held corporation  控股公司

board of directors  董事会

executove director  执行董事

non- executove director 非执行董事

chairperson  主席

controller 主计长

treasurer  司库

revenue   收入

profit   利润

earnings per share 每股盈余

return 回报

market share  市场份额

social good  社会福利

financial distress  财务困境

stakeholder theory 利益相关者理论

value (wealth) maximization 价值（财富）最大化

common stockholder  普通股股东

preferred stockholder 优先股股东

debt holder  债权人

well-being  福利

diversity  多样化

going concern 持续的

agency problem  代理问题

free-riding problem  搭便车问题

information asymmetry  信息不对称

retail investor  散户投资者

institutional investor 机构投资者

agency relationship 代理关系

net present value  净现值

creative accounting  创造性会计

stock option  股票期权

agency cost  代理成本
bonding cost  契约成本

monitoring costs  监督成本

takeover  接管

corporate annual reports 公司年报

balance sheet 资产负债表

income statement  利润表

statement of cash flows 现金流量表

statement of retained earnings 留存收益表

fair market value 公允市场价值

marketable securities 油价证券

check 支票

money order 拨款但、汇款单

withdrawal 提款

accounts receivable 应收账款

credit sale  赊销

inventory 存货

property,plant,and equipment 土地、厂房与设备

depreciation 折旧

accumulated depreciation 累计折旧

liability 负债

current liability 流动负债

long-term liability 长期负债

accounts payout 应付账款

note payout 应付票据

accrued espense 应计费用

deferred tax 递延税款

preferred stock 优先股

common stock 普通股

book value 账面价值

capital surplus 资本盈余

accumulated retained earnings 累计留存收益

hybrid 混合金融工具

treasury stock 库藏股

historic cost 历史成本

current market value 现行市场价值

real estate 房地产

outstanding  发行在外的

a profit and loss statement 损益表

net income 净利润

operating income 经营收益

earnings per share 每股收益

simple capital structure 简单资本结构
dilutive 冲减每股收益的

basic earnings per share 基本每股收益

complex capital structures 复杂的每股收益

diluted earnings per share 稀释的每股收益

convertible securities 可转换证券

warrant 认股权证

accrual accounting 应计制会计

amortization 摊销

accelerated methods 加速折旧法

straight-line depreciation 直线折旧法

statement of changes in shareholders’equity 股东权益变动表

source of cash 现金来源

use of cash 现金运用

operating cash flows 经营现金流

cash flow from operations 经营活动现金流

direct method 直接法

indirect method 间接法

bottom-up approach 倒推法

investing cash flows 投资现金流

cash flow from investing  投资活动现金流

joint venture  合资企业

affiliate  分支机构

financing cash flows 筹资现金流

cash flows from financing  筹资活动现金流

time value of money 货币时间价值

simple interest 单利

debt instrument 债务工具

annuity 年金

future value 终至

present value 现值

compound interest 复利

compounding 复利计算

pricipal 本金

mortgage 抵押

credit card 信用卡

terminal value 终值

discounting 折现计算

discount rate 折现率

opportunity cost 机会成本

required rate of return 要求的报酬率

cost of capital 资本成本
ordinary annuity普通年金

annuity due 先付年金


financial ratio 财务比率                                    deferred annuity 递延年金

restrictive covenants 限制性条款                      perpetuity 永续年金

bond indenture 债券契约                                  face value 面值

financial analyst 财务分析师                             coupon rate 息票利率

liquidity ratio 流动性比率                                 nominal interest rate 名义利率

current ratio 流动比率                                      effective interest rate 有效利率

window dressing 账面粉饰                                 going-concern value 持续经营价值

marketable securities  短期证券                      liquidation value 清算价值

quick ratio 速动比率                                         book value 账面价值

cash ratio 现金比率                                           marker value  市场价值

debt management ratios 债务管理比率             intrinsic value 内在价值

debt ratio 债务比率                                           mispricing 给……错定价格

debt-to-equity ratio 债务与权益比率                 valuation approach 估价方法

equity multiplier 权益乘         discounted cash flow valuation 折现现金流量模型

long-term ratio 长期比率                                  undervaluation 低估

debt-to-total-capital 债务与全部资本比率         overvaluation 高估

leverage ratios 杠杆比率                                   option-pricing model 期权定价模型

interest coverage ratio 利息保障比率            contingent claim valuation 或有要求权估价

earnings before interest and taxes 息税前利润   promissory note 本票
……

8. 金融会计专业英语，谁能帮我翻译一下？谢谢各位

First, liquidity :   
1, monetary funds   
2, short-term investments   
3, receivable Bills   
4, accounts receivable   
5, other receivables   
6, prepaid accounts   
7, bad debts ready   
8, inventory Inventory   
Including : raw materials 
6.RRaw materials supplier   
Finished goods supplier for products   
Foreign goods   
Semi-Working process saves   
9, the cost of funds   
10, the long-term debt due within one year of investment   
11, other assets   
Total current assets   
Second, long-term investment :   
1, long-term equity investment   
2, the long-term debt investments   
Total long-term investment   
Third, fixed assets :  
 Fixed asset price   
Less : accumulated depreciation   
Net fixed assets   
Cut; Fixed assets depreciation ready   
1, the net fixed assets   
2, engineering materials  
 3, projects   
4, fixed asset liquidation   
Total fixed assets   
4, intangible assets, and other assets : Intangible assets and other assets   
1, intangible assets Intangible assets   
2, the long-term cost of funds   
3, other long-term assets   Intangible assets, and other assets together   
5, deferred taxes :   1, deferred tax debits   Total assets   Liabilities, and the rights and interests of owners (or shareholders)   First, current liabilities : Current Liability   1, short-term borrowing   2, Notes payable to Bills   3, accounts payable Account payable   4, received in advance sales   5, to wage salary welfarism   6, payable to pensioners welfarism   7, accounts payable welfarism   8, the other should pay   9, other payables other Accrual expense      10, the cost involved   11, projected liabilities   12, the long-term liabilities due within one year   13, other current liabilities         Total current liabilities   Second, long-term liabilities : Liabilities Long-term   1, long-term borrowing   2, with bond   3, Long-term expense of long-term receivable payable   4, special dues   5, other long-term liabilities   Total long-term liabilities   3, deferred taxes :   1, deferred tax credits   Total liabilities      Fourth, the rights and interests of owners (or shareholders) Owner 's equity (Stockholder' s equity)   Paid-up capital (or equity) Area capital stock (Capital stock)   Cut; Investment has returned   1, the paid-up capital (or equity) net   2, capital surplus Capital surplus   3, the surplus reserve   Including : statutory Chest   4, undistributed profits   The rights and interests of owners (or shareholders), together   Liabilities, and the rights and interests of owners (or shareholders) Total