N A M A : NDARU KOCO PUSPITAHATI

N I M : B.231.17.0322
DILARANG KERJASAMA DAN COPY PASTE
DIKUMPULKAN KE KOMTING PALING LAMBAT HARI MINGGU JAM 23.00 WIB
RINGKASAN INI DIAMBIL DARI LEMBAR JAWABAN DI BAGIAN BAWAH
NO 1 NO 2 NO 3
a b a b 1 2
6.00% 7.00% 11.25% ### 6.80% 8.22%
RINGKASAN, JIKA TIDAK DI ISI BERARTI SAMA DENGAN TIDAK MASUK

COST OF DEBT

1 Calculate the after-tax cost of debt under each of the following cases
a. Interest rate is 8% , and the tax rate is 25%
b. The interest rate i 10% , and the tax rate is 30%
SOLUTION
Kd = ki ( 1 - t)
a. kd = 8% 1 -0.25 = 6.0%
b. kd = 10% 1 -0.3 = 7.0%

2 ABC Company has bonds outstanding wit 7 years left before

maturity. The bonds are currently selling f 872.5 and 1000
face value. The interest is paid annually at a rate of
12% The firm's tax rate is 25% Calculate the after-tax cost
of debt using (a) regular method and (b) the shorcut method
SOLUTION
a. the regular method
V = interest (PVIFA r,n) + M (PVIF r,n)
872.5 = 120 (PVIFA r,n)+ 1000 M (PVIF r,n)
Di coba dengan bunga 15%
V= 120 4.2883 + 1000 0.3579
V= 514.596 + 357.9
872.496

kd = 15% 1 -0.25 = 11.3%

b. the shorcut method

ki = 120 + ( 1000 -872.5
7
1000 + 872.5
2

138.21429 = 14.76%
936.25
 kd = 14.76% 1 -0.25 = 11.1%

3 Bakrie enterprises has compiled the following investments

a. Calculate the weighted average cost of capital, using
1. book value weights and
2. market value weights
b. Explain the difference in the results obtained in (a)
Type of Capital Book Value Market ValueAfter-tax Cost
Long-term debt 3,000,000 2,800,000 4.80%
Preferred stock 102,000 150,000 9.00%
Common stock 1,108,000 2,500,000 12.00%
4,210,000 5,450,000
SOLUTION
a. Calculate the weighted average cost of capital, using
1. book value weights and
Type of Capital Book Value Weight Cost (%) Weight Cost
Long-term debt 3,000,000 0.713 4.80% 3.42%
Preferred stock 102,000 0.024 9.00% 0.22%
Common stock 1,108,000 0.263 12.00% 3.16%
4,210,000 6.80%
2. market value weights
Type of Capital Book Value Weight Cost (%) Weight Cost
Long-term debt 2,800,000 0.514 4.80% 2.47%
Preferred stock 150,000 0.028 9.00% 0.25%
Common stock 2,500,000 0.459 12.00% 5.50%
5,450,000 8.22%