Fakhira Aziz

BA-01083-094
Date: 4th May,2012
Solution of Case Study
% of debt Debt

Equity

kd

EBIT

Interest

EBT

Tax

0
10
20
30
40
50
60

800,000
634,442
597,247
555,873
496,082
440,299
376,738

0%
7.2%
7.8%
8.3%
9.9%
10.5%
11.2%

160,000
160,000
160,000
160,000
160,000
160,000
160,000

0
5,760
12,480
19,920
31,680
42,000
53,760

160,000
154,240
147,520
140,080
128,320
118,000
106,240

56,000
53,984
51,632
49,028
44,912
41,300
37,184

0
80,000
160,000
240,000
320,000
400,000
480,000

N.I

krf

MRP

Beta

ke

MVE

Pps

# of share

104,000
100,256
95,888
91,052
83,408
76,700
69,056

12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%

4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%

0.70
0.75
0.81
0.90
1.00
1.16
1.38

15.60%
15.80%
16.06%
16.38%
16.81%
17.42%
18.33%

800,000
634,442
597,247
555,873
496,082
440,299
376,738

15.50
89.31
94.66
99.48
102.01
105.04
107.09

8,000
7,104
6,310
5,588
4,863
4,192
3,518

TMVF

Eps

WACC

800,000
714,442
757,247
795,873
816,082
840,299
856,738

13.0
14.1
15.2
16.3
17.2
18.3
19.6

15.60
14.94
14.40
13.96
14.05
13.96
14.05

OPTIMAL