TUGAS KEL MENKEU 2 DEADLINE SABTU 30 JUL 2022

ANSWER

A.    The analyst will accept the project if he/she compares the cost of debt only
with the return from the project to arrive at the decision since expected return>
after tax cost of debt
Analis akan menerima proyek jika dia membandingkan biaya hutang hanya
dengan pengembalian dari proyek untuk sampai pada keputusan karena
pengembalian yang diharapkan lebih besar dari pajak biaya hutang.

B.  The analyst will reject the project if he/she compares the cost of equity only
with the return from the project to arrive at the decision since expected return <
cost of equity
Analis akan menolak proyek jika membandingkan biaya ekuitas hanya dengan
pengembalian dari proyek, karena pengembalian yang diharapkan lebih kecil dari
biaya ekuitas.

C. The firm is investing in a projct North which provides a return of only 8% while
at the same time rejecting a project, South, which gives a higher return of 15%.
This is not in the best interests of the firm's investors.
Perusahaan yang berinvestasi di project north memberikan pengembalian hanya
8% dan menolak project, South yang memberikan pengembalian lebih tinggi
sebesar 15%. Hal tersebut bukan demi kepentingan terbaik bagi investor
perusahaan.

D. Capital Weights After-Tax cost weight x After tax cost explanation

= Hutang 40,00% x 7% = 2,80%

= Ekuitas saham biasa 60,00% x 16% = 9.60%
= 2,80% + 9.60% =12,40%
Biaya modal rata rata tertimbang (WACC) = 12,40%
E. Expected return WACC Criteria Decision
North 8% 12.40% expected return < WACC Reject Project
South 15% 12.40% expected return > WACC Accept project
Pengembalian yang diharapkan (WACC)
North 8% 12,40% pengembalian yang diharapkan < WACC project menolak
South 15% 12,40% pengembalian yang diharapkan > WACC menerima project

F. Analyst's initial recommendations are opposite to recommendations in part E

Analysts would choose project North and reject project South.
E chooses project South and rejects project North.
The more appropriate decision is to use the firm's WACC instead of the cost of the
least cost financing source.
A firm undertakes different projects and raises different sources of financing for
these projects.
Suppose at one time only debt is available and it finances the project with 8%
return with debt whose cost ...

Rekomendasi awal analis berlawanan dengan rekomendasi di bagian E

Analis akan memilih proyek Utara dan menolak proyek Selatan.

E memilih proyek Selatan dan menolak proyek Utara.

Keputusan yang lebih tepat adalah menggunakan WACC perusahaan daripada

biaya sumber pembiayaan dengan biaya paling rendah.
Sebuah perusahaan melakukan proyek yang berbeda dan meningkatkan sumber
pembiayaan yang berbeda untuk proyek-proyek ini.

P9-2 Cost of debt using both methods Currently, Warren Industries can sell 15-year,
$1,000-par-value bonds paying annual interest at a 12% coupon rate. As a result of
current interest rates, the bonds can be sold for $1,010 each; flotation costs of $30
per bond will be incurred in this process. The firm is in the 40% tax bracket.
a. Find the net proceeds from sale of the bond, Nd.
b. Show the cash flows from the firm’s point of view over the maturity of the bond.
c. Calculate the before-tax and after-tax costs of debt.
d. Use the approximation formula to estimate the before-tax and after-tax costs of
debt.
e. Compare and contrast the costs of debt calculated in parts c and d. Which
approach do you prefer? Why?
ANSWER

a. Net Proceeds
= Sale price of bond – Flotation cost
= $1,010 - $30
= $980

b. Aliran uang harus dicerminkan dari persepsi organisasi atas pembangunan

keamanan
Tahun 0
Arus kas masuk
Tahun 1 sampai 14
Arus kas keluar
Tahun 15
Net cash outflow
$980
($120) Setiap tahun
($1,120) ($120 coupon + $1000 maturity)

c. The before tax cost of debt 12%

The after tax cost of debt
= 12% × (1 - 0.40)
= 7.2%
d. - The Before Tax Cost of Debt
= ($120 ÷ $980) × 100
= 12.24%
- After tax Cost of Debt
= 12.24% × (1 - 0.40)
= 7.35%

e. Metode perkiraan cukup akurat tetapi metode perhitungan lebih baik,

karena metode perhitungan lebih akurat daripada perkiraan.

ANSWER
a. Annual interest amount on the bond
= 10% x $1,000
= $100
Before tax cost of debt (Bond)
Rd = $100 + ($1,000 - $1,200 / 7)
= 71,4
= $1,000 + $1,200 / 2
= 1,100
 = 71,4 / 1,100
Rd = 6.4%

b. After tax cost of debt (Bond)

Ri = 6.4% x (1 – 25)
Ri = 6.4% x 0.75
= 4.8%

ANSWER
Alternative A
Kd = $90 + ($1,000 - $1,220 / 16) = $76.25
= $1,220 + $1,000 / 2 = $1,110
= $76.25 / $1,110
= 6.87%
Ki = 6.87% × ( 1 – 40 ) = 4.12%
Alternative B
Kd = $70 + ($1,000 - $1,020 / 5) = $66.00
= $1,020 + $1,000 / 2 = $1,010
= 6.54%
Ki = 6.54% × ( 1 – 40 ) = 3.92%

Alternative C
Kd = $60 + ( $1,000 - $970 / 7 ) = $64.29
= $970 + $1.000 / 2 = $985
= $64.29 / $985
= 6.53%
Ki = 6.53% × ( 1- 40 ) = 3.92%

Alternative D
Kd = $50 + ( $1,000 - $895 / 10 ) = $60.50
= $895 + $1,000 / 2 = $947.50
= $60.50 / $947.50
= 6.39%
Ki = 6.39% × ( 1 – 40 ) = 3.83%

P9–7 Cost of preferred stock Mavis Taylor Corporation has just issued preferred stock. The
stock has a 6% annual dividend and a $100 par value, and was sold at $98.5 per share. Flotation
costs were an additional $3 per share.
a. Calculate the cost of the preferred stock.
b. If the firm sells the preferred stock with a 10% annual dividend and net $93.00 after flotation
costs, what is its cost?
ANSWER :
a. Cost of preferred stock
rp = Dp / Np
 = ( 6 × $100 ) ÷ ( $98.5 - $3 )
rp = 6.29%

b. Cost of preferred stock

rp = Dp / Np
= ( 10 × $100 ) ÷ ( $93)
rp = 10.75%

P9–9 Cost of common stock equity: CAPM Brigham Jewellery Corporation common stock has a
beta, b, of 1.8. The risk-free rate is 5%, and the market return is 16%.
a. Determine the risk premium on Brigham common stock.
b. Determine the required return that Brigham common stock should provide.
c. Determine Brigham’s cost of common stock equity using the CAPM.

ANSWER
a) Return on market – Risk free Rate

= 16% - 5%
= 11%

b) Required return = Rf + Beta * (RM – RF)

= 5% + 1.8*11%
= 5% + 19.8 %
= 24.8%
Jadi tingkat pengembalian yang diminta sebesar 24.8% yang harus disediakan

c) Jadi biaya Brigham Jewellery Corporation ekuitas saham biasa sama dengan b
yaitu sebesar 24.8%

P9–11 Retained earnings versus new common stock Using the stock code data for each company
shown in the following table, calculate the cost of retained earnings and the cost of new common
stock using the constant-growth valuation model.
Company, Current market price, per share Dividend growth rate, Projected dividend per share
next year, Underpricing per share, Flotation cost per share.
001 - $40.0 - 6% - $2.5 - $3.0 - $1.5
002 - 38.5 - 9 - 1.8 - 1.0 - 2.3
003 - 25.5 – 12 - 2.3 - 0.5 - 3.4
004 - 50.0 - 8 - 4.5 - 2.5 - 5.6
ANSWER
a. Kr = ( $2.50 ÷ $40.00 ) + 06 = 12.25%
Kn = ( $2.50 ÷ $37.00 ) + 06 = 12.76%
b. Kr = ( $1.80 ÷ $38.50 ) + 09 = 13.68%
Kn = ( $1.80 ÷ $36.50) + 09 = 13.93%
c. Kr = ( $2.30 ÷ $25.50 ) + 12 = 21.02%
Kn = ( $2.30 ÷ $22.50 ) + 12 = 22.22%
d. Kr = ( $4.50 ÷ $50.00 ) + 08 = 17%
Kn = ( $4.50 ÷ $47.00 ) + 08 = 17.58%