博迪_投资学第九版_英文答案(2)

博迪_投资学第九版_英文答案

5. Even if the firm does not need to issue stock in any particular year, the stock market

is still important to the financial manager. The stock price provides important

information about how the market values the firm's investment projects. For example, if the stock price rises considerably, managers might conclude that the market

believes the firm's future prospects are bright. This might be a useful signal to the firm to proceed with an investment such as an expansion of the firm's business.

In addition, shares that can be traded in the secondary market are more attractive to initial investors since they know that they will be able to sell their shares. This in turn makes investors more willing to buy shares in a primary offering, and thus

improves the terms on which firms can raise money in the equity market.

6.

a. No. The increase in price did not add to the productive capacity of the economy. b. Yes, the value of the equity held in these assets has increased.

c. Future homeowners as a whole are worse off, since mortgage liabilities have

also increased. In addition, this housing price bubble will eventually burst and

society as a whole (and most likely taxpayers) will endure the damage.

7.

a. The bank loan is a financial liability for Lanni. (Lanni's IOU is the bank's financial asset.) The cash Lanni receives is a financial asset. The new financial asset created is Lanni's promissory note (that is, Lanni’s IOU to the bank).

b. Lanni transfers financial assets (cash) to the software developers. In return,

Lanni gets a real asset, the completed software. No financial assets are created or destroyed; cash is simply transferred from one party to another.

c. Lanni gives the real asset (the software) to Microsoft in exchange for a financial asset, 1,500 shares of Microsoft stock. If Microsoft issues new shares in order to

pay Lanni, then this would represent the creation of new financial assets.

d. Lanni exchanges one financial asset (1,500 shares of stock) for another

($120,000). Lanni gives a financial asset ($50,000 cash) to the bank and gets back another financial asset (its IOU). The loan is "destroyed" in the transaction, since it is retired when paid off and no longer exists.