第二十八章 现金管理ctea.pptx

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1、McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-0Chapter Outline28.1 Reasons for Holding Cash28.2 Determining the Target Cash Balance28.3 Managing the Collection and Disbursement of Cash28.4 Investing Idle Cash28.5 Summary&ConclusionsMcGraw-Hill/IrwinCopyright

2、 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-128.1 Reasons for Holding Cash Transactions motive Compensating balancesMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-228.2 Determining the Target Cash Balance The Baumol Model The Miller-Orr Mode

3、l Other Factors Influencing the Target Cash BalanceMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-3Costs of Holding CashOpportunity CostsTrading costsTotal cost of holding cashC*Costs in dollars of holding cashSize of cash balanceThe investment income foregon

4、e when holding cash.Trading costs increase when the firm must sell securities to meet cash needs.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-4The Baumol ModelF=The fixed cost of selling securities to raise cashT=The total amount of new cash neededK=The opp

5、ortunity cost of holding cash:this is the interest rate.TimeCIf we start with$C,spend at a constant rate each period and replace our cash with$C when we run out of cash,our average cash balance will be.1 2 3The opportunity cost of holding is McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Compani

6、es,Inc.All rights reserved.28-5The Baumol ModelF=The fixed cost of selling securities to raise cashT=The total amount of new cash neededK=The opportunity cost of holding cash:this is the interest rate.TimeCAs we transfer$C each period we incur a trading cost of F each period.If we need T in total ov

7、er the planning period we will pay$F,T C times.1 2 3The trading cost is McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-6The Baumol ModelC*Size of cash balanceOpportunity CostsTrading costsThe optimal cash balance is found where the opportunity costs equals th

8、e trading costsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-7The Baumol ModelOpportunity Costs=Trading CostsThe optimal cash balance is found where the opportunity costs equals the trading costsMultiply both sides by CMcGraw-Hill/IrwinCopyright 2002 by The

9、McGraw-Hill Companies,Inc.All rights reserved.28-8The Miller-Orr Model The firm allows its cash balance to wander randomly between upper and lower control limits.$TimeHZLWhen the cash balance reaches the upper control limit H cash is invested elsewhere to get us to the target cash balance Z.When the

10、 cash balance reaches the lower control limit,L,investments are sold to raise cash to get us up to the target cash balance.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-9The Miller-Orr Model Math Given L,which is set by the firm,the Miller-Orr model solves f

11、or Z and Hwhere s2 is the variance of net daily cash flows.The average cash balance in the Miller-Orr model is McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-10Implications of the Miller-Orr Model To use the Miller-Orr model,the manager must do four things:1.

12、Set the lower control limit for the cash balance.2.Estimate the standard deviation of daily cash flows.3.Determine the interest rate.4.Estimate the trading costs of buying and selling securities.The model clarifies the issues of cash management:The best return point,Z,is positively related to tradin

13、g costs,F,and negatively related to the interest rate K.Z and the average cash balance are positively related to the variability of cash flows.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-11Other Factors Influencing the Target Cash Balance Borrowing Borrowi

14、ng is likely to be more expensive than selling marketable securities.The need to borrow will depend on managements desire to hold low cash balances.Compensating Balance Firms have cash in the bank as a compensation for banking services.Large corporations have thousands of accounts with several dozen

15、 bankssometimes it makes more sense to leave cash alone than to manage each account on a daily basis.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-12Float The difference between bank cash and book cash is called float.Float management involves controlling th

16、e collection and disbursement of cash.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-1328.3 Managing the Collection and Disbursement of Cash Accelerating Collections Delaying Disbursements Disbursement Float Zero-Balance Accounts Drafts Ethical and Legal Ques

17、tionsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-14Accelerating CollectionsCustomer mails paymentCompany receives paymentCompany deposits paymentCash receivedMail delayMail floatProcessing delayProcessing floatClearing delayClearing floattimeCollection flo

18、atMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-15Overview of Lockbox Processing Corporate Customers Corporate Customers Corporate Customers Corporate Customers Local Bank Collects funds from PO Boxes Envelopes opened;separation of checks and receipts Deposi

19、t of checks into bank accounts Details of receivables go to firm Firm processes receivables Bank clears checks Post Office Box 1 Post Office Box 2McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-16Delaying Disbursements1.Write check on a distant bank.2.Hold pay

20、ment for several days after postmarked in office.3.Call supplier firm to verify statement accuracy for large amounts.4.Mail from distant post office.5.Mail from post office that requires a great deal of handling.Firm prepares check to supplier Post Officeprocessing Delivery of check to supplier Depo

21、sit goes to suppliers bank Bank collects fundsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-17Drafts Firms sometimes use drafts instead of checks.Drafts differ from checks because they are not drawn on a bank but on an issuer(the firm)and are payable by the

22、issuer.The bank acts only as an agent,presenting the draft to the issuer for payment.When the draft is transmitted to a firms bank for collection,the bank must present the draft to the issuing firm for acceptance before making payment.After the draft has been accepted,the firm must deposit the neces

23、sary cash to cover the payments.This allows the firm to keep less cash on hand.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-18Ethical and Legal Questions The financial managers must always work with collected company cash balances and not with the companys

24、book balance,which reflects checks that have been deposited but not collected.If you are borrowing the banks money without their knowledge,you are raising serious ethical and legal questions.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies,Inc.All rights reserved.28-1928.4 Investing Idle Cash A firm with surplus cash can park it in the money market.Some large firms and many small ones use money market mutual funds.Firms have surplus cash for three reasons:Seasonal or Cyclical Activities Planned Expenditures Different Types of Money Market Securities