資源描述：
《international capital market equilibrium》由會(huì)員上傳分享，免費(fèi)在線閱讀，更多相關(guān)內(nèi)容在工程資料-天天文庫(kù)。
1、ChapterChapter1313InternationalCapitalMarketEquilibriumAmanagershouldallocatecapitaltoaninvestmentprojectwhenthepresentvalueofthenetcashflowsgeneratedbytheprojectexceedsthecurrentinvestmentoutlay.Applyingthisnetpresentvalueprinciplerequiresadiscountrate.Itisoneofthehallma
2、rksofmodernfinancethatthisdiscountrate—thecostofequitycapital—issetbyinvestorsinthecapitalmarkets.Wheninvestorsfinanceafirmbypurchasingitsequityshares,theyforgotheopportunitytoin-vestintheequitiesofmanyotherfirms.Therefore,investorsdemandtobecompensatedfortheopportunityco
3、stoftheirinvestmentwithanappropriateexpectedrateofreturn.Consequently,themanagerofafirminacapitalbudgetingsituationshouldsetthediscountrateforaprojecttobetheexpectedreturnforthefirm’sinvestorsasiftheywereinvestingdirectlyinthatproject.Chapter11showedthattheinternationalbo
4、ndmarketsetsthecostofacompany’sdebtequaltotherisk-free(government)interestrateonbondsplusariskpremiumtocompensateforthepossibilitythatthecompanymaydefaultonthedebt.Theappropriateratefordiscountingtheequitycashflowsofanyprojectsimilarlydependsonhowriskytheinvestorsinthefir
5、mviewthecashflowsfromthatparticularprojecttobe.However,thinkingaboutriskinincreas-inglyglobalequitymarketsisdifficultbecausetherearemanymorefactorsinvolved.How,then,doinvestorsdeterminetheriskinessofaninvestment,andhowdomanagersknowtherequiredrateofreturnonariskyinvestmen
6、t?Unfortunately,therearenoeasyan-swerstothesequestions,andtherearecompetingtheories.Thischapterdevelopsthetheoriesnecessarytodeterminethecostofequitycapital.Itthendemonstrateshowthesetheoriesap-plyinaninternationalcontext.Becauseinvestorssetthecostofequitycapital,westartw
7、ithadetourthroughthefascinatingworldofinternationalinvestingandthetheoryofoptimalport-foliochoice.Theideaofportfoliodiversificationfiguresprominently,andwewillarguethatinternationaldiversificationishighlydesirable.BlackRock,theworld’slargestassetmanagerwithover$3trillion,
8、hasthisadviceonitsiSharesWebsite(http://us.ishares.com/home.htm)inresponsetothequestion,“Whyinve
