A Case-based Excellent Model for Graduation Thesis —— A Case Study of Financing Decision-making
In financial decision-making, enterprises often face financing difficulties, such as low debt financing cost but high financing risk, and owner equity finance has low financial risk but high financing cost. How to balance these two financing methods and maximize the profits of enterprises is something that financial personnel need to plan carefully. This paper attempts to plan financing decisions from the general direction through the form of cases, hoping to inspire financial personnel.
Keywords financing decision; case analysis
I. Alternative financing methods
In the process of daily business activities, it is inevitable to raise funds due to the expansion of production, speculative needs, temporary turnover and other reasons. Financing methods can be roughly divided into two categories: debt financing and owner equity finance. Debt financing is to raise the required funds by borrowing from creditors. The cost of debt financing is relatively low, but due to the need to repay the principal and interest regularly, once the enterprise is short of funds and its profits decline, it may face the financial risk of being filed for bankruptcy by creditors. The owner, equity finance, raised the funds needed by the enterprise through the new investment of the enterprise owner. In the owner equity finance, the owner has the right to claim the remaining property of the enterprise after paying the principal and interest. Because it is distributed after the creditor, the owner bears more risks, so the owner equity finance has less risks, but the return required by the owner is also high, and it is easy to dilute the equity of the enterprise, disperse the control right of the enterprise, and damage the interests of the original shareholders. The two financing methods have their own advantages and disadvantages, which need to be analyzed according to the specific situation of the enterprise.
Second, listed companies financing decision-making case study
The original intention of the establishment of enterprises is to bring more benefits to the owners of enterprises, that is, shareholders. Therefore, all financing and investment decisions of enterprises should focus on the maximization of enterprise value, or more specifically, the maximization of shareholder wealth. Therefore, we can choose net profit or after-tax income as the core index of enterprise financing decision. However, if an enterprise wants to create more wealth for shareholders and realize the growth of after-tax profits, it must first make the most effective use of the enterprise's funds and obtain the maximum income before interest and tax without considering the source of funds. After deducting taxes and interest from the established profit before interest and tax, it is the after-tax profit. For a typical listed company, we usually use earnings per share to measure the growth of shareholder wealth. So in this analysis, we pay attention to two indicators: earnings before interest and tax and earnings per share.
Case: The current capital of a listed company is 6,543,800,000 yuan, and its structure is: 20% debt capital (annual interest of 200,000 yuan) and 80% common stock equity capital (issuing 6,543,800,000 shares of common stock). Now it is ready to issue an additional 5 million yuan, and there are two financing schemes to choose from: (1) all ordinary shares are issued at a share price of 100 yuan. (2) Raising of all long-term debts: the interest rate is 10%.
1. After the enterprise issues additional funds, it is estimated that the profit before interest and tax will be 3.3 million yuan, and the income tax rate will be 25%. Which financing method should enterprises choose to maximize earnings per share?
Now, if the enterprise chooses the first financing method and issues all ordinary shares, the total capital of the enterprise will be150,000 yuan, of which 2 million yuan will be raised in liabilities and the owner's equity will be 800+500 =130,000 yuan (/kloc-0+500/100 =/kloc). At this time, the debt interest rate of the enterprise is still 10%, which means that the enterprise's ability to use funds is higher than that of creditors, and there is still a surplus after the loan funds are repaid, so debt financing should be chosen. However, enterprises choose equity financing. At this time, the enterprise obtained after-tax profit (330-20) (1-25%) = 2.325 million yuan, and earnings per share =232.5/ 15= 15.5 yuan.
If the enterprise chooses the second financing method, it is completely in debt. At this time, the total capital of the enterprise is 6,543,805,000 yuan, of which debt financing is 2,000,500 = 7,000,000 yuan, and owner equity finance is 8,000,000 yuan (6,543,800,000 shares). After additional financing, the income before interest and tax is 3.3 million yuan, and the return on capital is 22%, which is higher than the average interest rate after additional financing 10%. It is preliminarily judged that debt financing should be adopted. After-tax profit (330-700 *10%) * 0.75 = 265,438+ten thousand yuan, and earnings per share = 210//kloc-0 = 21yuan. Although the total after-tax profit decreased due to the increase in liabilities, the income available to each shareholder increased. To sum up, we can know that the earnings per share of Scheme II is higher, and debt financing should be chosen.
2. After the enterprise raises additional funds, due to the economic downturn, it is estimated that the profit before interest and tax will drop to 6,543,800 yuan+200,000 yuan, and the income tax rate will be 25%. Which financing method should enterprises choose to maximize earnings per share?
Similarly, if the first financing method is selected and all common shares are issued, the total capital of the enterprise is 6.5438+0.5 million yuan, including 2 million yuan in debt financing and 800+500 = 6.5438+0.3 million yuan in owner's equity (654.38+00+500/654.38+000 = 654.38). At this time, the debt interest rate of the enterprise is still 10%, and the income obtained is not enough to pay interest. Debt will only lead to greater losses for enterprises, so equity financing should be chosen. At this time, the enterprise obtained after-tax profit (150-20) (1-25%) = 975,000 yuan, and earnings per share =97.5/ 15=6.5 yuan.
If the enterprise chooses the second financing method, it is completely in debt. At this time, the total capital of the enterprise is 6,543,805,000 yuan, of which debt financing is 2,000,500 = 7,000,000 yuan, and owner equity finance is 8,000,000 yuan (6,543,800,000 shares). After additional financing, the income before interest and tax is 6.5438+0.2 million yuan, and the return on capital is 8%, which is lower than the average interest rate of 654.38+00% after additional financing. It can be preliminarily judged that the stop loss should be proposed by equity. If shareholders are forced to raise funds through debt, they can only get after-tax profit (150-700 *10%) * 0.75 = 600,000 yuan, and earnings per share =60/ 10=6 yuan. After-tax profits are even lower.
To sum up, we can know that the plan 1 has higher earnings per share, and equity financing should be chosen.
Through the above cases, we can preliminarily judge that when the enterprise has strong capital utilization ability and high earnings before interest and tax, and the return on capital after considering tax factors is higher than the debt interest rate, debt financing should be adopted to bring higher earnings per share to shareholders; When the enterprise's capital utilization ability is weak, and the rate of return on capital is lower than the debt interest rate after considering tax factors, debt will only make the enterprise lose more, and the owner's equity finance method should be adopted. Then, it explains the importance of earnings before interest and tax as an index to judge the level of enterprise's capital utilization ability.
We can find a balance point of income before interest and tax. There is no difference between liabilities and owner equity finance. At this time, no matter which financing method is adopted, the earnings per share are the same. Assuming that EBIT is the earnings before interest and tax, the following formula can be established under the above circumstances: [(EBIT-20) (1-25%)]/15 = [(ebit-70)? ( 1-25%)]/ 10。 The income of the balance point before interest and tax is 6.5438+0.7 million yuan. At this time, using equity and debt financing, the earnings per share can be 654.38+00 yuan, and there is no difference between them. However, if the EBIT of an enterprise is higher than 6.5438+0.7 million yuan, such as 3.3 million yuan, the profitability of the enterprise will be improved, so debt financing should be adopted to obtain more residual profits and earnings per share; If the EBIT of an enterprise is less than 6.5438+0.7 million yuan, such as 6.5438+0.5 million yuan, the enterprise's ability to use funds will be reduced or even insufficient to repay the principal and interest. Therefore, enterprises should adopt equity financing to reduce losses and obtain higher earnings per share.
To sum up, we can draw a conclusion that the choice of financing methods should focus on improving shareholders' income without considering risks. If it is a non-listed company, there is no earnings per share index. You can use ROE as an alternative to analogy calculation.
Take the exam and contribute.
[1] Intermediate wealth management. Accounting qualification evaluation center of the Ministry of Finance [J]. Beijing: Economic Science Press, 20 12.
Case-based geography case teaching: the second wonderful model essay for graduation thesis.
[Abstract] Case teaching is based on students' geographical knowledge and principles, under the careful planning and guidance of teachers, according to the requirements of curriculum standards and teaching content, using typical cases, students think independently or cooperate collectively to further improve their ability to identify, analyze and solve a geographical problem, and at the same time cultivate students' ability to correctly analyze and claim benefits and the spirit of cooperation.
[Keywords:] Geography; Case teaching
1 Background of case teaching
The newly promulgated geography curriculum standard (experimental draft) is based on the requirements of social development, the characteristics of disciplines and the laws of students' understanding, focusing on cultivating students' abilities, truly embodying students' themes in teaching and implementing them? Humanities teaching? That is, through some geographical knowledge closely related to students' lives, the requirements of quality education are reflected and students can learn from it? Studying geography? Orientation? Studying geography? . Its core is to make students change from passive? Want me to study geography? Become active? I want to study geography? From simply acquiring knowledge to learning the means and methods of acquiring knowledge. So as to improve students' geographical literacy and comprehensive analysis ability.
In order to achieve this goal, case teaching is an effective method. Broadly speaking, case teaching can be defined as a teaching method that guides students to discuss these special situations through the description of a specific educational situation. Case teaching has broken the role of teachers as educators and narrators in traditional teaching. In case teaching, the teacher's role is to guide and promote, and its role orientation is to dominate the whole process of case teaching. Their responsibilities are threefold: First, teachers should select cases pertinently before class, and truly understand the problems to be solved and the goals to be achieved in a case. Generally speaking, a case can well illustrate an underground principle; Second, teachers should lead the case discussion process in the classroom, not only to guide students to think and demonstrate, but also to combine the characteristics of underground disciplines. Solve? The specific underground problems in the case, and then get some insights from the case, and guide students to explore various geographical factors behind the specific case and various possibilities of development and change; Thirdly, teachers should be responsible for updating cases, so that case teaching can reflect the current reality, suit the students' reality and make students interested in cases, which is the basis of case teaching.
2. Design and implementation of teaching cases:
2. 1 Choose case topics carefully, and the choice of cases should be determined according to the requirements of curriculum standards. Geography teaching has different ability requirements in different parts, and students' ability requirements should be put forward according to different contents when designing cases. Of course, the author arranged some cases for us in the textbook. These cases are classic, we can learn from them or choose some cases ourselves. For example, when analyzing mixed agriculture, we can use the case of Australia in the classroom. You can also choose pond agriculture in the Pearl River Delta as a case study according to local conditions. For another example, when teaching the location range of a country or region, the ability requirement is low, as long as students can describe or point out it on the map (for example, the location of Russia can be described directly according to the map, and if it is the first time, it is necessary to supplement the location of a region with latitude); When teaching the economic development of a country or region, students are required to find and comprehensively analyze all kinds of information before drawing a conclusion. For example, in order to cultivate students' comprehensive analysis ability, we can take American agricultural production as a case and design such a proposition according to some knowledge that students have mastered. The United States exports a large number of domestic products to Russia every year. Why in this case, students can compare the topography, climate, agricultural production mode and mechanization level between the United States and Russia. To find the answer. In the process. Students have gained the experience of comprehensively analyzing problems with geographical knowledge.
Secondly, we should choose cases according to students' abilities and interests. For example, when teaching the factors affecting population migration, according to the characteristics of more Hakka students (including new Hakka students) in our school, students are guided to analyze why Hakka people are formed. In addition, teachers should try to avoid using the same type of cases many times, because it will also make students uninterested. Teachers can use different cases according to different contents (comparison method, reverse deduction method, field investigation method, etc.). For example, when teaching the high-tech development in the United States, you can contact students living in big cities and ask them to list some high-tech products made in the United States that can be common in our lives (Boeing aircraft, Motorola mobile phones, IBM computers, etc.). ).
2.2 Arrange the topics in time before class and give appropriate guidance. After choosing a topic, students should be informed in advance in order to collect information and prepare for classroom communication; For some students' first questions, teachers should give some guidance, such as population migration in the above example. If they haven't met, it's hard for students to start, so they need to give some hints (such as the migration of Hakka people and the tide of migrant workers, etc. ), and then let students find out for themselves that population migration is influenced by macro factors such as natural environment, life and professional needs, as well as economic and war factors. In this way, students can basically find information and analyze and solve problems according to the prompts.
2.3 Reasonable control of the classroom, after the case is set, whether the expected goal can be achieved is an important content of topic exchange, which can be implemented from the following aspects:
As far as my personal classes are concerned, junior high school students should be active, while senior high school students are unwilling to communicate or cope in class. The communication between students depends on the size of students and the design of class seats. In the seventh grade, I tried student participation and communication between teachers and students. There were both successes and shortcomings: the success was that students actively participated in it, which could arouse students' enthusiasm for learning and was easy for students to master; The disadvantage is that the content of a class is difficult to finish on time. This kind of teaching can make students feel that they are equal to every classmate and even teachers, have the opportunity to participate in teaching activities, and can communicate face to face with teachers to realize teacher-student interaction and student-student interaction.
(2) The participation of all staff should make every student actively participate in the discussion. We can advance the discussion and exchange to classroom teaching, and each class will be divided into several geography groups at the beginning of the semester. In each case class, they will look for information, discuss problems and sit together in class as a unit. In the class discussion. Each group will send a representative to explain the group's views on the problem, and other members can supplement them, so as to ensure that all students can participate in the discussion as much as possible in the limited time.
③ Art summary .. Our case teaching is not only for students to look up information by themselves.
It is also very important for students to acquire correct geographical knowledge and correct geographical analysis methods, so it is necessary to evaluate and choose the solutions proposed by different groups according to the problems in the case. For example; In Brazil? The crisis of the rainforest? In the case teaching, students put forward various schemes on how to effectively develop and protect amazon rain forest (such as: strictly legislating against cutting down trees, instructing logging companies to invest part of their profits in afforestation, and driving away all farmers who cultivate in this area, etc. ). These schemes all have some truth, which reflects students' correct understanding of this part of knowledge. At this time, teachers should analyze the direction or goal of the answer to this question with students, so it is necessary.
(4) Do a good job in the evaluation of students in case studies. I designed the following case teaching classroom evaluation table in case teaching.
3 matters needing attention in case teaching
In case teaching, teachers, as classroom guides, must also pay attention to the following matters:
First, the principle of openness, pay attention to provide students with free space to play, do not restrict students' thinking, do not criticize different opinions, even if his views are illogical, it is best to let other students express their opinions on him, such as some strange ideas, but also give affirmation and encouragement, and teachers should keep themselves out of the discussion. In other words, don't participate in students' comments or discussions, just listen all the time.
The second is the guiding principle for teachers to ask questions. Questions should be closely related to cases, so that students can correctly grasp the direction of questions and analyze them in depth. For example, students can be guided by such questions: a. What do you think should be done in the face of such problems? What's your opinion and suggestion on this issue? Wait a minute.
Third, in the evaluation process, teachers should not give students so-called standard answers. There is no only standardized answer to any question, and the standard answer is the reins to control students' thinking. It will also make students feel dependent and waiting. The student's answer is reasonable, and it must be affirmed if it conforms to the geographical characteristics.
Fourth, pay attention to cultivating students' team spirit, cooperation consciousness and communication ability. In the process of learning, students form groups to consult materials and complete the project together. Teachers should use this process to consciously improve students' team consciousness and communication ability with others.