Exhibit 9

Actual 0%
6.16%
32.50%

Interest rate
Tax Rate
G
I
V
E
N

Book value :
Debt
Equity
Total capital
Market Value
Debt
Equity

$
$
$

- $
225,888,000 $
225,888,000 $

22,589,000
203,299,000
225,888,000

$
$
$

- $
643,773,000 $
643,773,000 $

22,589,000
628,516,000
651,105,000

Share Price (Current)

Buy back stock
Share outstanding
Share Price

EPS
Price
Net Income
P/E
Return on Equity

Debt to Equity Ratio

Debt/Total Capital
10%
6.16%
32.50%

22.10
29,130,000
22.10 $

###
1,022,127
28,107,873
22.36

0.70 $
643,773,000
20,299,000 $
31.71
8.99%

0.69
628,516,000
19,359,000
32.47
9.52%

11.11%

Debt/Total Capital
20%
6.16%
32.50%

$
$
$

45,178,000 $
180,710,000 $
225,888,000 $

30%
6.16%
32.50%

67,766,000
158,122,000
225,888,000

Cost of capital
Cost of equity (using CAPM)
Rf
Beta
Rm
Re
Cost of debt (using interest rate)
Credit interest rate
WACC

$
$
$

45,178,000 $
613,259,000 $
658,437,000 $

22.10
2,044,253
27,085,747
22.64 $

###
3,066,335
26,063,665
22.94

0.68 $
613,259,000
18,419,000 $
33.29
10.19%

0.67
598,002,000
17,480,000
34.21
11.05%

$
$
$

25.00%

67,766,000
598,002,000
665,768,000

42.86%

Debt
0%
10%
20%
30%

=market value equity/share outstanding

=net income/share outstanding

= net income/total equity book value

4.76%
0.85
5% (S&P 500)
4.96%

6.16%

WACC
Equity
100%
90%
80%
70%

outstanding

4.96%
4.88%
4.80%
4.72%

denominator lebih kecil, jadi share price lebih besar, ar

penggunaan interest yang lebih besar sehingga menye

karena denominator menjadi kecil ada buy back saham

re price lebih besar, artinya supply share berkurang maka price juga akan naik

besar sehingga menyebabkan perubahan NI lebih besar dibanding dengan perubahan shareoustanding

cil ada buy back saham, karena ada hubungan berbalik, jadi ROE semakin besar

shareoustanding

0%
6.16%
32.50%

Interest rate
Tax Rate
EBIT
Interest Expense
EBT
Income Taxes
Net Income

$
$
$
$
$

Book value :
Debt
Equity
Total capital

$
$
$

$
$
$

Market Value
Debt
Equity

Exhibit 9
Debt/Total Capital
10%
6.16%
32.50%

30,054,000
30,054,000
9,767,550
20,286,450

$
$
$
$
$

30,054,000
2,782,940
27,271,060
8,863,094
18,407,965

- $
225,888,000 $
225,888,000 $

22,589,000 $
203,299,000 $
225,888,000 $

45,178,000
180,710,000
225,888,000

- $
643,773,000 $
643,773,000 $

22,589,000 $
628,516,000 $
651,105,000 $

45,178,000
613,259,000
658,437,000

$
$
$
$

###
1,391,470
28,662,530
9,315,322
19,347,208

20%
6.16%
32.50%

Breakeven Level of EBIT

Interest
CSOU
0% $
29,130,000
10% $
1,391,470
29,130,000
20% $
2,782,940
29,130,000
30% $
4,174,410
29,130,000

Unleverage
Leverage
Leverage
Leverage
Break even EBIT Formula
EBIT = interest *CSOU
CSOU-CSOL

CSOU
CSOL

Common Stock outstanding unleverage

Common Stock outstanding leverage

Market Value Debt

Tax Rate
PV Tax Shield
Share before buyback

30%
6.16%
32.50%
$
$
$
$
$

30,054,000
4,174,410
25,879,590
8,410,867
17,468,723

Increase in Value to Shareholders

Original Price
Share Price after buyback
Shares Able to Repurchase
Share outstanding after buy back

The effect of Finan

$
$
$

67,766,000
158,122,000
225,888,000

$
$
$

67,766,000
598,002,000
665,768,000

Debt to Equity Ratio

EPS
Return on Equity
Share Price
P/E
WACC

BEP EBIT
CSOL
29,130,000
28,119,407 $
27,131,349 $
26,165,080 $

#DIV/0!
40,108,645
40,560,872
41,013,100

Debt
0%
10%
20%
30%

CONCLUSION

If EBIT is lower than BEP EBIT we will still avoid using d

repurchased share. But if EBIT is greater that BEP EBIT
should using debt in term of make our company better

0%
$
$

$
$
$

$
32.5%
- $
29,130,000

10%
22,588,800 $
32.5%
7,341,360 $
29,130,000

20%
45,177,600 $
32.5%
14,682,720 $
29,130,000

30%
67,766,400
32.5%
22,024,080
###

$
22.10 $
22.10 $
29,130,000

0.252 $
22.10 $
22.35 $
1,010,593
28,119,407

0.504 $
22.10
22.60 $
1,998,651
27,131,349

0.756
###
22.86 New Share Price
2,964,920
26,165,080

The effect of Financial Leverage

0%
11%
$
0.696 $
0.688 $
8.98%
9.52%
$
22.10 $
22.35 $
31.7
32.5
WACC
Equity
100%
4.96%
90%
4.88%
80%
4.80%
70%
4.72%

CONCLUSION

P EBIT we will still avoid using debt in

if EBIT is greater that BEP EBIT we
m of make our company better

25%
0.678 $
10.19%
22.60 $
33.3

43%
0.668
11.05%
22.86
34.2

ew Share Price

VALUATION STOCK PRIC

Exhibit 7

Comparative Restaurant Financial Data

Share Price
EPS
California Pizza Kitchen
Applebee's International, Inc
BJ's Restaurants, Inc
Brinker International
Buffalo Wild Wings, Inc
The Cheesecake Factory, Inc
Chiptole Mexican Grill, Inc
Darden Restaurants, Inc
Frisch's Restaurants, Inc
McCormick & Schmick's
Panera Bread Company
P.F Chang's China Bistro
RARE Hospitality Int'l Inc
Red Robin Gourment Burgers
Ruth's Chris Steak House, Inc
Sonic Corporation
Texas Roadhouse, Inc
Average

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

22.10
24.28
20.05
29.37
41.78
24.57
86.00
44.14
30.54
25.66
46.02
35.37
26.76
40.19
16.80
22.00
12.81

$
0.71
$
1.17
$
0.41
$
1.49
$
0.93
$
1.02
$
1.28
$
2.16
$
1.78
$
0.92
$
1.87
$
1.24
$
1.45
$
1.82
$
1.01
$
0.88
$
0.44
1.2105882353

P/E Ratio
31.13
20.75
48.90
19.71
44.92
24.09
67.19
20.44
17.16
27.89
24.61
28.52
18.46
22.08
16.63
25.00
29.11
28.6232773

TION STOCK PRICE

PER CPK > PER Industry = Undervalued

PER CPK < PER BJ's Restaurant = Undervalued, asumsi BJ's memiliki beta
(risk) yang sama, namun PER BJ lebih besar, artinya stock price lebih
mahal, so CPK mengalami undervalued