2020年3月ACCA考試P4高級(jí)財(cái)務(wù)管理真題一、案例分析題二、SectionAIntroduction

WestparleyCoisalistedretailer,mainlysellingfoodandsmallhouseholdgoods.Ithasoutperformeditscompetitorsoverthelastfewyearsasaresultofprovidinghighqualityproductsatreasonableprices,andalsohavingastrongerpresenceonline.Ithaskeptacontroloncosts,partlybyavoidingoperatinglargestoresonexpensivecitycentresites.Instead,ithashadsmallerstoresontheedgeofcitiesandtowns,andalimitednumberoflargerstoresonconvenientout-of-townsites,aimingatcustomerswhowanttheirjourneystoshopstobequick.Oneofitsadvertisingsloganshasbeen:‘Wearewhereyouwantustobe.’

WestparleyCo’ssharepricehasrecentlyperformedbetterthanmostcompaniesintheretailsectorgenerally.Sharepricesintheretailsectorhavebeenrelativelylowasaresultofpoorresultsduetohighcompetition,largefixedcostbaseandhighinterestrates.Theexceptionhasbeensharesinretailersspecialisingincomputerandhigh-technologygoods.Thesesharesappeartohavebenefitedfromaboomgenerallyinsharepricesofhigh-technologycompanies.Someanalystsbelievesharepricesofmanycompaniesinthehigh-technologysectoraresignificantlyhigherthanarationalanalysisoftheirfutureprospectswouldindicate.

MatraversCo

WestparleyCohasidentifiedthelistedretailerMatraversCoasanacquisitiontarget,becauseitbelievesthatMatraversCo’ssharesarecurrentlyundervaluedandpartofMatraversCo’soperationswouldbeagoodstrategicfitforWestparleyCo.

MatraversCooperatestwotypesofstore:

MatraversHomemainlysellslargerhouseholditemsandhomefurnishings.ThesetypesofretailerhaveperformedparticularlybadlyrecentlyandonemajorcompetitorofMatraversHomehasjustgoneoutofbusiness.MatraversHomeoperatesanumberofcitycentresitesbuthasamuchhigherproportionofout-of-townsitesthanitscompetitors.

MatraversTechsellscomputersandmobilephonesinmuchsmalleroutletsthanthoseofMatraversHome.

ExtractsfromMatraversCo’slatestannualreportaregivenbelow:

Theshareofpre-taxprofitbetweenMatraversHomeandMatraversTechwas80:20.

ThecurrentmarketvalueofMatraversCo’ssharesis$12,500manditsdebtiscurrentlytradingatitsbookvalue.WestparleyCobelievesthatitwillhavetopayapremiumof15%toMatraversCo’sshareholderstobuythecompany.

WestparleyCointendstotakeadvantageofthecurrentvaluesattributedtobusinessessuchasMatraversTechbysellingthispartofMatraversCoattherelevantsectorpriceearningsratioof18,ratherthanaforecastestimateofMatraversTech’spresentvalueoffuturefreecashflowsof$4,500m.

Thecompanytaxrateforbothcompaniesis28%peryear.

Post-acquisitioncostofcapital

Thepost-acquisitioncostofcapitalofthecombinedcompanywillbebasedonitscostofequityandcostofdebt.Theassetbetapost-acquisitioncanbeassumedtobebothcompanies’assetbetasweightedinproportiontotheircurrentmarketvalueofequity.

WestparleyCohas4,000million$1sharesinissue,currentlytradingat$8·50.Ithas$26,000mdebtinissue,currentlytradingat$105per$100nominalvalue.Itsequitybetais1·02.

MatraversCo’sassetbetais0·75.ThecurrentmarketvalueofMatraversCo’ssharesis$12,500manditslong-termloaniscurrentlytradingatitsbookvalueof$6,500m.

Therisk-freerateofreturnisestimatedtobe3·5%andthemarketriskpremiumisestimatedtobe8%.

Thepre-taxcostofdebtofthecombinedcompanyisexpectedtobe9·8%.Itcanbeassumedthatthedebt:equityratioofthecombinedcompanywillbethesameasWestparleyCo’scurrentdebt:equityratioinmarketvalues.

Thecompanytaxrateforbothcompaniesis28%peryear.

PlansforMatraversCo

TheofferforMatraversCowillbeacashoffer.Anyfundingrequiredforthisofferwillbeamixtureofdebtandequity.Althoughforthepurposesofthecalculationithasbeenassumedthattheoverallmixofdebtandequitywillremainthesame,thedirectorsareconsideringvariousplansforfundingthepurchasewhichcouldresultinachangeinWestparleyCo’sgearing.

AssoonasitacquiresallofMatraversCo’ssharecapital,WestparleyCowouldsellMatraversTechasitdoesnotfitinwithWestparleyCo’sstrategicplansandWestparleyCowishestotakeadvantageofthelargevaluescurrentlyattributedtohigh-technologybusinesses.WestparleyCowouldthencloseMatraversHome’sworst-performingcitycentrestores.ItanticipatesthelossofreturnsfromthesestoreswouldbepartlycompensatedbyhigheronlinesalesbyMatraversCo,generatedbyincreasedinvestmentinitsonlineoperations.Theremainingcitycentrestoresandallout-of-townstoreswouldstartsellingthefoodandhouseholditemscurrentlysoldinWestparleyCo’sstores,andWestparleyCobelievesthatthiswouldincreaseprofitsfromthosestores.

WestparleyCoalsofeelsthatreorganisingMatraversCo’sadministrativefunctionsandusingincreasedpowerasalargerretailercanleadtosynergiesaftertheacquisition.

Post-acquisitiondetails

OnceMatraversTechhasbeensold,WestparleyCoestimatesthatsalesrevenuefromtheMatraversHomestoreswhichremainopen,togetherwiththeonlinesalesfromitshomebusiness,willbe$43,260minthefirstyearpost-acquisition,andthisfigureisexpectedtogrowby3%peryearinyears2to4.

Theprofitmarginbeforeinterestandtaxisexpectedtobe6%ofsalesrevenueinyears1to4.

Taxallowabledepreciationisassumedtobeequivalenttotheamountofinvestmentneededtomaintainexistingoperations.However,aninvestmentinassets（includingworkingcapital）willberequiredof$630minyear1.Inyears2to4,investmentinassetseachyearwillbe$0·50ofevery$1increaseinsalesrevenue.

Afterfouryears,theannualgrowthrateoffreecashflowsisexpectedtobe2%fortheforeseeablefuture.

AswellasthefreecashflowsfromMatraversCo,WestparleyCoexpectsthatpost-taxsynergieswillarisefromitsplannedreorganisationofMatraversCoasfollowsinthenextthreeyears:

ThecurrentmarketvalueofMatraversCo’ssharesis$12,500manditsdebtiscurrentlytradingatitsbookvalueof$6,500m.

Required:（1）.（a）DiscussthebehaviouralfactorswhichmayhaveledtobusinessessuchasMatraversTechbeingvaluedhighly.__________________________________________________________________________________________

正確答案：（Individualbusiness

Anumberofbehaviouralfactors,todowiththeindividualcompanyaswellasthesectorasawhole,mayleadtoMatraversTechbeingvaluedhigherthanappearstobewarrantedbyrationalanalysisofitsfutureprospects.Onepossiblefactoristheaskingprice,evenifitisnotafairone,mayprovideareferencepointwhichsignificantlyinfluencesthepurchaser’svaluationofthebusiness.

ThefactthatMatraversTechisavailableforpurchasemayhelpraiseitsprice.Purchasersmayseethisasarareopportunitytobuyanattractivebusinessinthisretailsector.Thiswillbemademorelikelyifinvestorshavelossaversionbias,adesiretobuyMatraversTechnowbecauseotherwisetheopportunitywillbelost.

MatraversTechbeingofferedforsalewillmeanthatinformationaboutthecompany,showingitinapositivelight,willbeavailableforpurchasers.Thiscouldresultinavailabilitybias,investorstakingparticularnoteofthisinformationbecausetheycanreadilyobtainit,ratherthanotherinformationwhichmaybemoredifficultorcostlytofind.

Sector

Thereareanumberofpossiblebehaviouralreasonswhysharepricesinthissectorappeargenerallyhigherthanrationalanalysisindicates.Oneistheherdinstinct,investinginthesectorbecauseotherinvestorshavealsobeenbuyingshares,notwishingtomakejudgementsindependentlyofotherinvestors.

Theherdinstinctmaybegeneratedbyprevioussharepricemovements.Investorsmaybelieveoncepricesstartrisinginthesector,theywillcontinuetodosoindefinitely.

Followingfashionmayalsobeafactor.Fundmanagerswhowishtogivetheimpressionthattheyareactivelymanagingtheirportfoliobymakingregularchangestoit,mayhaveapreferenceforcompanieswhichappearup-to-dateandarecurrentlypopular.Thismaybelinkedtoanexpectationthatsalesoftechnologically-advancedgoodsarelikelytogeneratehighreturns.

Thereisalsoconfirmationbias,theideathatinvestorswillpayattentiontoevidencewhichconfirmstheirviewsthatthesectorisagoodoneinwhichtoinvest,andignoreevidencewhichcontradictstheirbeliefs.Inthepast,technologycompanieshavebeenvaluedusingmethodswhichsupportthebeliefsofinvestorsthattheyareofhighvalue,ratherthantraditionalmethods,suchascashflowanalysis,whichsuggestalowerbusinessvalueismorerealistic.）（2）.（b）PrepareareportfortheboardofdirectorsofWestparleyCowhich:

（i）comparestheadditionalvaluewhichWestparleyCobelievescanbegeneratedfromthesaleofMatraversTechbasedontheP/Eratio,withthatoftheprojectedpresentvalueofitsfuturefreecashflows;

（ii）calculatestheweightedaveragecostofcapitalforthecombinedcompany;

（iii）estimatesthetotalvaluewhichWestparleyCo’sshareholderswillgainfromtheacquisitionofMatraversCo;and

（iv）assessesthestrategicandfinancialvaluetoWestparleyCooftheacquisition,includingadiscussionoftheestimationsandassumptionsmade.

Professionalmarkswillbeawardedinpart（b）fortheformat,structureandpresentationofthereport.__________________________________________________________________________________________

正確答案：（（iv）Reporttotheboardofdirectors,WestparleyCo

ThisreportevaluateswhethertheacquisitionofMatraversCowouldbebeneficialtoWestparleyCo’sshareholdersbyestimatingthefuturevaluegeneratedbyMatraversCo（i.e.MatraversHomecurrently）,theproceedsfromsellingMatraversTechandtheadditionalvaluecreatedfromsynergiesimmediatelyafterthecompaniesarecombined.

Strategicfit

Thestrategiccasefortakingoverthebusinessappearstobestrongestfortheout-of-townstoresandtheonlinebusiness.Theacquisitionwouldprovideanadditionalout-of-townpresenceforWestparleyCo.Betterusageintheout-of-townstorescouldgeneratehigherreturns.Havingthefoodandhomebusinessesonthesamesitecouldgeneratesomecross-salesbetweenthetwo.Possiblycombiningthetwocompanies’onlinepresenceandinvestingfurthercouldmeanMatraversHomebenefitingfromthefactorswhichhavedrivenstrongperformancebyWestparleyCo.

Takingoverthecitycentrestores,eventhesuccessfulones,seemstohavelessstrategiclogic,however.WestparleyCowouldbetakingonahighcostburden.Thesuccessofthefoodbusinessincitycentresisdoubtful,asfoodshopssitedtherewillbelessconvenientforcustomerswhodonotliveinthecitycentres,andWestparleyCohasmarketeditselfasbeingeasilyaccessibleforcustomers.Thereis,perhaps,widerincompatibilitybetweenthetwobusinesses.Thefoodbusinessischaracterisedbyquickshoppingforoftenalimitednumberofitems,whereaspurchasesinthehomebusiness,particularlyoflargeritems,arelikelytotakelongerandsiteconveniencebelessofanissue.

Financialaspects

BasedonthepredictionsforfuturecashflowsandrequiredpremiumsfromMatraversCo’sshareholders,theacquisitionwouldaddvaluetoWestparleyCo’sshareholders,if,andonlyif,theexcessvalueonsellingMatraversTechandthesynergiesarebothlargelyachieved.Togethertheyaddupto$2,400m（$558m+$1,842m）comparedwithtotaladdedvalueof$1,897m.TherearequestionsabouttheestimatesforthesefiguresandalsotheestimatesforthefuturefreecashflowsofthecurrentMatraversHomebusiness.

Synergies

Mostoftheadditionalvalueisduetosynergiesanditisdifficulttoseehowthesynergiesarecalculated.Thereislikelytobescopeforsomeadministrativesavings.However,operationalcostsynergiesappearlessobviousasthetwocompaniesareoperatingindifferentretailsectors.Anysynergyfigureswillalsohavetotakeaccountofcostsinachievingsynergies,suchasstoreclosurecosts,andalsocommitmentssuchasleaseswhichmaybeaburdenforsometime.Synergiesmayalsonotbeachievedbecauseoflackofco-operationbystafforproblemsintegratingthetwobusinesses.

CurrentMatraversHomebusiness

Thesuggestedincreaseincashflowsappearsdoubtfulforanumberofreasons.Ifstoresbeingclosedaremakingpositivecashflowcontributions,thesewillhavetobereplaced.Whethertheycanbeisdoubtfulgiventheproblemsinthispartoftheretailsector.Itmaybeamoreprofitableuseofstorespacetohaveanareaforfoodsales,butthefoodsalesgeneratedinMatraversCo’sshopsmaytakebusinessfromWestparleyCo’sexistingshops.Similarly,increasedonlinesalesmaybeattheexpenseofsalesinstores.

SaleofMatraversTech

Thereisnoindicationofhowinterestedbuyerswillbeinthebusiness.Theindustryprice-earnings（P/E）ratiousedmaybeanaveragewhichdoesnotreflectMatraversTech’scircumstances.ItwouldbebettertofindaP/Eratioforaproxycompanywithsimilarfinancialandbusinessrisk.AsMatraversTechwouldnotbelisted,thiswouldsuggestadiscounttotheP/Eratioshouldbeapplied.SincealsoWestparleyCohasanestimateoffuturefreecashflow,potentialbuyersmaybeabletocomeupwiththeirownestimatesandbasethepricetheyarepreparedtopayontheirestimates.

Otherassumptions

Oneimportantassumptionisthe15%premiumexpectedtoberequiredbyMatraversCo’sshareholders.Otherassumptionsmadeinthecalculationsincludeoperatingprofitmarginandtaxratesremainingconstantandcashflowsbeingassumedtoincreasetoperpetuity.Incrementalcapitalinvestmentisassumedtobeaccurate.Itisassumedthatthecostofdebtwillremainunchangedandthattheassetbeta,costofequityandcostofdebtcanbedeterminedaccurately.Givenalltheassumptions,WestparleyCoshouldcarryoutsensitivityanalysisusingdifferentassumptionsandobtainingarangeofvalues.

Conclusion

Ontheassumptionsmade,theacquisitionappearstoaddfinancialvaluefortheshareholdersofWestparleyCo.However,thefiguresaresubjecttoasignificantnumberofuncertaintiesandthestrategiclogicforbuyingthewholeMatraversbusinessappearsunclear.Onbalance,WestparleyComaywanttoconsideramorelimitedacquisitionofjusttheout-of-townstoresiftheseareavailable,astheiracquisitionappearstomakebetterstrategicsense.

Reportcompiledby:

Date

Appendix1Estimateofadditionalvaluecreatedfromsell-offofMatraversTech（b）（i）

Shareofpre-taxprofit=20%x$1,950m=$390m

After-taxprofit=$390mx（1–0·28）=$281m

Proceedsfromsell-offbasedonP/Eratio=$281mx18=$5,058m

Excessvaluefromsell-off=$5,058m–$4,500m=$558m

Appendix2Estimateofcombinedcompanycostofcapital（b）（ii）

MatraversCoassetbeta=0·75

WestparleyCoassetbeta

Marketvalueofdebt=1·05x$26,000m=$27,300m

Marketvalueofequity=4,000millionx$8·50=$34,000m

Assetbeta=1·02x（34,000）/（34,000+（27,300x0·72））=0·65

Combinedcompany,assetbeta

MarketvalueofMatraversCoequity=$12,500m

Assetbeta=（（0·75x12,500）+（0·65x34,000））/（12,500+34,000）=0·68

Equitybeta=0·68（（34,000+（27,300x0·72））/34,000）=1·07

Combinedcompanycostofequity=3·5%+（1·07x8%）=12·1%

Combinedcompanycostofcapital=（（34,000x12·1%）+（27,300x9·8%x0·72））/（34,000+27,300）=9·9%,say10%

Appendix3EstimateofthevaluecreatedforWestparleyCo’sshareholders（b）（iii）

Cashflows,years1to4

Presentvalueyears1to4=$4,091m

Presentvalueyear5onwards（（$1,353mx1·02）/（0·1–0·02））x1·10–4=$11,781m

Totalpresentvalue=$4,091m+$11,781m=$15,872m

Synergies

Presentvalueofsynergies=$1,842m

AmountpayableforMatraversCo’sshares=$12,500mx1·15=$14,375m

ValueattributabletoMatraversCo’sinvestors=$14,375m+$6,500m=$20,875m

ValueattributabletoWestparleyCoshareholders=presentvalueofcashflows+proceedsfromsell-off+valueofsynergies–valuetoMatraversCo’sinvestors

=$15,872m+$5,058m+$1,842m–$20,875m=$1,897m）（3）.（c）DiscussthefactorswhichmaydeterminehowtheofferforMatraversCowillbefinancedandhencethelevelofgearingwhichWestparleyCowillhave.__________________________________________________________________________________________

正確答案：（

Calculationofgearing

Ifgearingiscalculatedonthebasisofmarketvalues,afallinthesharepricewillresultinthelevelofgearingrising.WestparleyCo’sboardmaybeworriedaboutafallinthesharepricegiventheproblemsaffectingmanycompanies’sharepricesintheretailsectorandthepossibilitythatthestockmarketmayreactadverselytotheacquisition.

Directors’preferences

Directorsmayhavetheirownpreferencesaboutfinancing.Theymaybeabletochooseamixofsourcesandalevelofgearingwhichreflectsthesepreferences.Directorsmaybeconcernedabouttoohighaburdenofpaymenttofinanceproviders,intermsofcostorultimatelyrepaymentofdebt.Theymaynotwishtocommitthecompanytoconditionsimposedbyfinanceproviders.Bycontrast,theymaybeconcernedabouthowachangeintheshareholderbaseasaresultofashareissuemayimpactupontheirownposition.Directorsmayalsobeconcernedabouttheimpressiongivenbytheirchoiceoffinance.Peckingordertheorystatesthatequityissueisseenasthelastresortforfinancing,soifthepurchaseisfinancedbyanequityissue,itmaybeseenasasignofalackofconfidencebydirectorsthatWestparleyCocansustainitscurrentshareprice.

Costsandcashflows

Gearingdecisionsmaynotjustbedeterminedbytheirownpreferencesbutbyexternalconditionsorconstraints.Choosingmoredebtcouldlowertheoverallcostofcapital,duetolowercostandtaxrelief,makinginvestmentssuchasMatraversCoappearmoreprofitable.Higherlevelsofdebtmayresultinthecostofequityrising,reducingtheoverallimpactonthecostofcapital.Againstthat,higherlevelsofdebtmeanincreasedfinancecostcommitments,eventhoughWestparleyComayneedfurthercashforinvestmentinstores.Thismaybeanimportantconcernifinterestratesarehigh.Bycontrast,dividendstoshareholdersdonothavetobepaidwhenreturnsarelowormoneyisrequiredforinvestment,althoughfailuretomeetdividendexpectationsmayresultintheboardbeingpressurisedbyshareholders.

Availability

Theavailabilityoffinancemayalsobeasignificantissue,particularlyifanacquisitionhastobecompletedquickly.Anequityissuemaytaketimetoarrangeandrequireshareholderapproval.SufficientdebtfinancemaybedifficulttoobtainiflendersfeelthatWestparleyCoalreadyhassignificantcommitmentstodebtfinanceproviders.Thetimescaleoverwhichfinanceisavailablemaybesignificant.WestparleyComayseeklonger-termfinanceifexistingdebtfinanceisduetoberepaidsoonorifsignificantcashisneededforshort-terminvestment,notjustinMatraversCo’sstores,butalsoinWestparleyCo’sexistingstores.

Mix

Otherexternalfactorsmayinfluencethemixoffinancechosen.WestparleyCo’sdirectorsmaybeconcernedaboutkeepingthelevelofgearingatorbelowtheindustryaverage,becauseoffinanceprovidersbecomingworriedifgearingexceedsindustrylevels.KeepingdebtasasignificantelementinoverallfinancemayactasadeterrenttoacquirersbecominginterestedinmakingabidforWestparleyCo.Directorsmayalsonothaveatargetfigureinmindbutbecontentifgearingiswithinarangeofvalues.）三、SectionBBoullainCoisbasedintheEurozoneandmanufacturescomponentsforagriculturalmachinery.Thecompanyisfinancedbyacombinationofdebtandequity,havingobtainedalistingfiveyearsago.Inadditiontothefounder’sequitystake,theshareholdersconsistofpensionfundsandotherinstitutionalinvestors.Untilrecently,saleshavebeengeneratedexclusivelywithintheEurozoneareabutthedirectorsarekeentoexpandandhaveidentifiedNorthAmericaasakeyexportmarket.ThecompanyrecentlycompleteditsfirstsaletoacustomerbasedintheUnitedStates,althoughpaymentwillnotbereceivedforanothersixmonths.

Hedgingpolicyandkeystakeholders

Atarecentboardmeeting,BoullainCo’sfinancedirectorarguedthattheexpansionintoforeignmarketscreatestheneedforaformalhedgingpolicyandthatshareholdervaluewouldbeenhancedifthispolicywascommunicatedtothecompany’sotherstakeholders.However,BoullainCo’schiefexecutiveofficerdisagreedwiththefinancedirectoronthefollowinggrounds.First,existingshareholdersarealreadywelldiversifiedandwouldthereforenotbenefitfromadditionalriskreductionhedgingstrategies.Second,thereisnoobviousbenefittoshareholdervaluebycommunicatingthehedgingpolicytootherstakeholderssuchasdebtproviders,employees,customersandsuppliers.Youhavebeenaskedtoprovidearationaleforthefinancedirector’scommentsinadvanceofthenextboardmeeting.

Hedgingproducts

Assumetoday’sdateis1March20X0.BoullainCoisduetoreceive$18,600,000fromtheAmericancustomeron31August20X0.Thefinancedirectoriskeentominimisethecompany’sexposuretoforeignexchangeriskandhasidentifiedforwardcontracts,exchangetradedfuturesandoptionsasawayofachievingthisobjective.

Thefollowingquotationshavebeenobtained.

Exchangerates（quotedas€/US$1）

Currencyfutures（contractsize€200,000;exercisepricequotedasUS$per€1）

Currencyoptions（contractsize€200,000;exercisepricequotedasUS$per€1,premium:UScentsper€1）

Assumefuturesandoptionscontractsmatureatthemonthendandthatthereisnobasisrisk.Thenumberofcontractstobeusedshouldberoundeddowntothenearestwholenumberincalculations.Ifthefullamountcannotbehedgedusinganexactnumberoffuturesoroptionscontracts,thebalanceishedgedusingtheforwardmarket.

Margininformation

Oncethepositionisopen,theeurofuturescontractoutlinedabovewillbemarked-to-marketonadailybasis.ThetermsofthecontractrequireBoullainCotodepositaninitialmarginof$3,500percontractwiththeclearinghouse.Assumethemaintenancemarginisequivalenttotheinitialmargin.Theticksizeonthecontractis$0·0001.

YourmanagerisconcernedabouttheimpactofanopenfuturespositiononBoullainCo’scashflowandhasaskedyoutocalculateandexplaintheimpactofthefollowinghypotheticalchangesintheclosingsettlementpriceinthefirstthreedaysofthecontract.

Closingsettlementprices（US$per€1）

Required:（1）.（a）ExplaintherationaleforthepolicyofhedgingBoullainCo’sforeignexchangeriskandthepotentialbenefitstoshareholdervalueifthatpolicyiseffectivelycommunicatedtothecompany’skeystakeholders.__________________________________________________________________________________________

正確答案：（Rationaleforhedgingpolicy

WithintheframeworkofModiglianiandMiller,BoullainCo’sCEOiscorrectinstatingthatacompany’shedgingpolicyisirrelevant.Inaworldwithouttransactionoragencycosts,andwheremarketsareefficientandinformationsymmetrical,hedgingcreatesnovalueifshareholdersarewelldiversified.Shareholdervaluemayevenbedestroyedifthecostsassociatedwithhedgingexceedthebenefits.

However,intherealworldwheremarketimperfectionsexist,includingthetransactioncostsofbankruptcyandothertypesoffinancialdistress,hedgingprotectsshareholdervaluebyavoidingthedistresscostsassociatedwithpotentiallydevastatingforeignexchangefluctuations.

Activehedgingmayalsobenefitdebt-holdersbyreducingtheagencycostsofdebt.Aclearlydefinedhedgingpolicyactsasasignallingtoolbetweenshareholdersanddebt-holders.Inthissense,hedgingallowsforhigherleverageandalowercostofdebtandreducestheneedforrestrictivecovenants.

Communicationofpolicywithstakeholders

Evenwhenforeignexchangerisksarehedged,thefundingofvariationmarginpaymentsonexchangetradedfuturescancreatefinancialdistress.AwellcommunicatedhedgingstrategyallowsdebtproviderstomakeinformeddecisionsaboutBoullainCo’sabilitytoserviceitsdebt.

Agencycostsandtheriskoffinancialdistressalsoimpacttheexpectedwealthofemployeeswho,unlikeshareholders,maynotenjoytheriskreductionbenefitsofadiversifiedportfolio.AconsistenthedgingpolicyreducestherisksfacedbyemployeeswhichmayservetobenefitBoullainCointheformofmotivationalandproductivityimprovements.

CustomersandsuppliershaveclaimsonacompanywhichcreateshareholdervaluebutareconditionaluponBoullainCo’ssurvival.Suppliersmayinvestinproductionsystemswhichcreatevalueintheformoflowercosts.Forcustomers,theseclaimsreflectpromisesofqualityandafter-salesservicelevelswhichenableBoullainCotochargehigherprices.Inbothcases,shareholdervalueiscreatedaslongasthecustomersandsuppliersbelievetheseclaimswillbehonoured.Onewayofachievingthisisbyimplementingahedgingstrategyandcommunicatingittostakeholders.

Inconclusion,managementshouldattempttocommunicatetheprinciplesunderlyingitshedgingstrategyandthebenefitstoshareholdervalueintheformofreducedagencyanddistresscosts.Inthisway,stakeholderscanmakeinformeddecisionsaboutthepotentialrisksandimpactontheirexpectedwealth.）（2）.（b）RecommendahedgingstrategyforBoullainCo’sforeigncurrencyreceiptinsixmonths’timebasedonthehedgingchoicesthefinancedirectorisconsidering.Supportyourrecommendationwithappropriatediscussionandrelevantcalculations.__________________________________________________________________________________________

正確答案：（Forwardcontract

$18,600,000x0·8729=€16,235,940

Futures

BuySeptember€futures

Calculationoffuturesprice

Spotrate（US$/€1）=1/0·8707=1·1485

Predictedfuturesusingspotrate=1·1422+（（1·1485–1·1422）x1/7）=1·1431

Orusingfutures:1·1422+（（1·1449–1·1422）x1/3））=1·1431

Numberofcontracts

Expectedreceipt=$18,600,000/1·1431=€16,271,542

Numberofcontracts=€16,271,542/€200,000=81·4,say81contracts

Amountunderhedged=