Research On Financial Effect Of Muyuan Shares Preferred Stock Financing

As a new type of financing tool,preferred stocks have the dual characteristics of stocks and bonds,which can effectively help companies to raise funds and expand corporate financing channels,especially for agricultural companies,because of their long production cycles and other characteristics,they need a stable source of funds.Therefore,this article selects Mayuan Food Co.,Ltd.(hereinafter referred to as " Muyuan shares"),which is the first issue of preferred shares of agricultural listed companies,as the case study object.First of all,this article combines the development status and characteristics of the agricultural industry,and the actual situation of Muyuan,sorts out the motivation for issuing preferred shares,the issuance plan and the comparison of the main terms with other issuing companies,and then uses the case analysis method and EVA value evaluation method And the F-score model to analyze the financial effects of Muyuan after the issuance of preferred shares,including the comparison of financial performance before and after the issuance,the cost of capital effect,the value-added effect of corporate value,and changes in financial risk.The research results show that: Muyuan's preferred stock financing enhances the company's solvency and eases the pressure on capital;optimizes the capital structure,guarantees the stability of shareholder control,and reduces the company's weighted average cost of capital;increasing the company's capital investment conducive to the company's future value appreciation.From the perspective of financial risk,the F value obtained through the F scoring model is much larger than the critical value of 0.0274.Compared with before the preferred stock financing,the F value decreased slightly,mainly because the profit before interest and tax was greatly reduced,and the investment risk increased Big.But at the same time,it should also be noted that after the issuance of preferred shares,the company's current asset turnover rate and total asset turnover rate have declined,and the asset utilization efficiency needs to be improved;preferred shares have enhanced the company's solvency in the short term,but the long-term improvement effect is not obvious The debt-servicing capacity needs to be strengthened.In addition,although the controlling power of the controlling shareholder is guaranteed,it is necessary to pay attention to the possibility of diluting voting rights.Finally,it proposes optimization and improvement proposals for the preferred stock financing plan of Muyuan,and draws the following enlightenment based on the full text case study: Preferred stocks can be used as an effective financing tool for enterprises;prior to the issuance of preferred stocks by enterprises,it is necessary to formulate priority Stock financing plan;improve the profitability of the enterprise;pay attention to the capital cost effect of the enterprise.Through this case study,with a view to providing other companies with reference to financing experience,so as to promote the promotion and application of preferred stock financing practices in China's listed companies.