TAILIEUCHUNG - Lecture Hospitality financial management: Chapter 6 - DeFranco, Lattin

The sixth chapter covers financing growth. More specifically, authors discuss capital, basic debt terminology, types of loans, sources for loans, types of equity, sources of equity, hotel financing in the 1970s and 1980s and new hotel financing vehicles. | Chapter 6 Financing Growth Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Capital Types Costs Debt Terminology Loans Types Sources Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Equity Types Sources Hotel Financing in the 1970s and 1980s New Hotel Financing Vehicles Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Capital Defined Money, or the equivalent of money, that is loaned to, or invested in, a business Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Types of Capital Debt Fixed obligation or liability of the business that must be paid back, with interest, over a specified period of time. Equity Ownership in the business that does not require immediate repayment, but requires a return on the capital invested. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Cost of Capital Cost of Debt Interest expense the borrower pays the lender Cost of Equity Portion of cash flow the sponsor of a deal allocates to the investor Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Weighted Average Cost of Capital or WACC Amount of interest expense and cash flow allotted to equity investors divided by the amount of capital Takes into consideration: Capital mix Tax effect Interest portion of debt service treated as an expense for tax purposes in the US Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Calculation WACC = wd kd (1-T) + we ke Weight of debt = wd Cost of debt = kd (1-T) Tax rate of business = T Tax effect = (1-T) Weighted cost of debt = wd kd (1-T) Weight of equity = we Cost of equity = ke Weighted cost of equity = we ke Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved WACC Calculation Example Weight of debt = Cost of debt = 10% () Tax rate of business = Tax effect = Weighted cost of debt = ()(10%)() Weight of equity = Cost of equity = 20% Weighted cost of equity = ()(20%) WACC =

• Quản trị kinh doanh
• Financial management
• Hospitality financial management
• Hospitality industry management
• Financing growth
• Debt terminology
• Sources for loans
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Quản lý tài chính
• Multinational financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point