Tugas

Mata Kuliah: Financial Management

Dosen Pengampu: Tandelilin Eduardus, Prof., Dr., M.B.A.

Assignment Final

Disusun oleh:

Alla Zahwa Andewi N. 464977

PROGRAM STUDI MAGISTER MANAJEMEN

FAKULTAS EKONOMIKA DAN BISNIS
UNIVERSITAS GADJAH MADA
YOGYAKARTA
2020
 Financial Management Assigment Week 1
Problem Chapter : 1-3, 1-4, 2-4, 2-9, 3-9, 3-11

Chapter 1:

1-3 Nilai intrinsik perusahaan adalah perkiraan nilai "sebenarnya" saham berdasarkan data risiko
dan pengembalian yang akurat. Hal tersebut dapat diperkirakan tetapi tidak diukur dengan
tepat. Harga saham saat ini adalah harga pasar, nilai berdasarkan informasi yang dipersepsikan
tetapi mungkin salah seperti yang dilihat oleh investor marjinal. Dari definisi ini, kita dapat
melihat bahwa nilai jangka panjang "sebenarnya" saham lebih terkait erat dengan nilai
intrinsiknya daripada harga saat ini.

1-4 Adanya investasi tersebut membuat adanya pengeluaran uang yang bisa jadi berasal dari laba
ditahan. Hal ini akan bepengaruh terhadap menurunnya pembagian deviden di tahun tersenuta
kepada para pemegang saham karena laba yang harusnya dibagikan digunakan untuk
berinvestasi. Namun, jika investasi tersebut kedepannya mampu mengurangi biaya-biaya
operasional perusahaan maka hal ini akan meningkatkan cash flow perusahaan. Sehingga, para
investor akan merasa tertarik untuk membeli saham perusahaan dan akan meningkatkan nilai
intrinsic perusahaan juga kemudian.

Chapter 2:

2-4 EBITDA = $7,500,000; NI = $1,800,000; Int = $2,000,000; T = 40%; DA = ?

EBITDA $7,500,000
DA 2,500,000 EBITDA – DA = EBIT; DA = EBITDA – EBIT
EBIT $5,000,000 EBIT = EBT + Int = $3,000,000 + $2,000,000
Int 2,000,000 (Given) $1,800,000 $1,800,000
EBT $3,000,000 =
(1 − T ) 0.6
Taxes (40%) 1,200,000
NI $1,800,000 (Given)

2-9 AT&T Bonds Yield = 7.5%

A-T yield on FLA bond = 5%.
A-T yield = 6%
Tax = 35%
Tax exempt = 70%
After tax rate of return all?

A-T yield on AT&T bond = 7.5% - Taxes = 7.5% - 7.5%(0.35) = 4.875%.

Check: Invest $10,000 @ 7.5% = $750 interest.

Pay 35% tax, so A-T income = $750(1 - T) = $750(0.65) = $487.50.

 A-T rate of return = $487.50/$10,000 = 4.875%.

A-T yield on AT&T preferred stock:

A-T yield = 6% - Taxes = 6% - 0.3(6%)(0.35) = 6% - 0.63% = 5.37%.

Therefore, invest in AT&T preferred stock. We could make this a harder problem by
asking for the tax rate that would cause the company to prefer the Florida bond or the
AT&T bond.

Chapter 3:

3-9 Current assets = $1,312,500 ; Current liabilities = $525,000 ; Inventory = $375,000

Berapakah hutang jangka pendek yang diambil oleh perusahaan dengan ketentuan bahwa
current ratio tidak lebih dari 2? Quick ratio ?
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
Current ratio saat ini = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

$1,312,500
=
$525,000

= 2.5
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠+𝑁𝑃
Current ratio max = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠+𝑁𝑃

$1,312,500+NP
2 = $525,000+NP

2 ($525,000 + NP) = $1,312,500 + NP

$1,050,000 + 2 NP = $1,312,500 + NP
2 NP – NP = $1,312,500 - $1,050,000
NP = $262,500

Berdasarkan perhitungan diatas, maka hutang jangka pendek yang dapat diambil dengan
ketentuan Current Ratio ≤ 2 yaitu sebesar $262,500.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Quick ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

($1,312,500+$262,500) −($375,000+$262,500)
= ($525,000+$262,500)

$1,575,000−$637,500
= $787,500

= 1.19
3-11 Debt Ratio = 0.5
Quick Ratio = 0.8
Total Assets Turnover = 1.5
DSO = 36.5
GPM on Sales = 0.25
Inventory Turnover Ratio =5
Total Assets = $300,000
Long Term Debt = $60,000
Retained Earnings = $97,500

Cash, Account Receivable, Inventories, Fixed Assets, Sales, Account Payable,

Common Stock, Total Liabilities and Equity, dan COGS?

Total Liabilities
Debt Ratio = Total Assets

Total Liabilities
0.5 = $300,000

Total Liabilities = 0.5 x $300,000

Total Liabilities = $150,000

Total Liabilities = Total Current Liabilities + Long Term Debt

$150,000 = Total Current Liabilities + $60,000
Total Current Liabilities = $150,000 - $60,000
Total Current Liabilities = $90,000

Total Current Liabilities = Account Payable + Notes Payable + Accruals

$90,000 = Account Payable + $0 + $0
Account Payable = $90,000

Total Liabilities and Equity = Total Assets

Total Liabilities and Equity = $300,000

Total Liabilities and Equity = Total Liabilities + Total Equity

$300,000 = $150,000 + Total Equity
Total Equity = $300,000 - $150,000
Total Equity = $150,000

Total Equity = Common Stock + Retained Earnings

$150,000 = Common Stock + $97,500
Common Stock = $150,000 - $97,500
Common Stock = $52,500
𝑆𝑎𝑙𝑒𝑠
Total Assets Turnover = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝑆𝑎𝑙𝑒𝑠
1.5 = $300,000
Sales = 1.5 x $300,000
Sales = $450,000
 (𝑆𝑎𝑙𝑒𝑠−𝐶𝑂𝐺𝑆)
GPM on Sales = 𝑆𝑎𝑙𝑒𝑠

$450,000−𝐶𝑂𝐺𝑆
0.25 = $450,000

0.25 x $450,000 = $450,000 – COGS

COGS = $450,000 - $112,500
COGS = $337,500

𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
DSO = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑆𝑎𝑙𝑒𝑠 𝑃𝑒𝑟 𝐷𝑎𝑦

𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
36.5 = $450,000/365

36.5 𝑥 $450,000
Account Receivables = 365

Account Receivables = $45,000

𝑆𝑎𝑙𝑒𝑠
Inventory Turnover = 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

$450,000
5 = 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

$450,000
Inventory =
5

Inventory = $90,000
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Quick Ratio = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

(𝐶𝑎𝑠ℎ+𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒+𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦)−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Quick Ratio =
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

(𝐶𝑎𝑠ℎ+$45,000+$90,000)−$90,000
0.8 = $90,000

Cash = (0.8 x $90,000) - $45,000

Cash = $72,000 - $45,000
Cash = $27,000

Total Assets = Total Current Assets + Total Fixed Assets

Total Assets = (Cash + Account Receivable + Inventory) + Total Fixed Assets
$300,000 = ($27,000 + $45,000 + $90,000) + Total Fixed Assets
Total FA = $300,000 - $162,000
Total FA = $138,000
 Financial Management Assigment Week 2
Assignment Week 2 : Problems CH4: 4-21, 4-26; CH6: 6-7,6-9

CHAPTER 4.

P 4-21
Sales for Hanebury Corporation’s just-ended year were $12 million. Sales were $6 million 5 years
earlier.
a. At what rate did sales grow?
b. Suppose someone calculated the sales growth for Hanebury in part a as follows: “Sales
doubled in 5 years. This represents a growth of 100% in 5 years; dividing 100% by 5 results
in an estimated growth rate of 20% per year.” Explain what is wrong with this calculation.
Diketahui : FV = $12.000.000 PV = $6.000.000
Ditanya : a. r = ?
b. Bila r = 20% dan N = 5 berapa nilai FV? Jelaskan apa yang salah dari
perhitungan
Jawab :
a. FV5 = PV (1 +r)N
$12.000.000 = $6.000.000 (1+r)5
$12.000.000
(1+r)5 = $6.000.000
(1+r)5 =2
5
(1+r) = √2
(1+r) = 1,1487
r = 1,1487 – 1
= 0,1487
=14,87 %
= 15%

b. FV5 = PV (1 +r)N
FV5 = $6.000.000 (1+0,2)5
FV5 = $6.000.000 (2,488)
FV5 = $14.928.000
FV5 = $15.000.000
Perhitungan tersebut gagal menjelaskan compounding effect karena nilai masa
mendatang seharusnya sebesar $15.000.000 untuk 5 tahun kedepan bukan
$12.000.000.

Q 4-26
You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per year—with
the first payment being made a year from today—into a bank account that pays 12% annual
interest. Your last deposit will be less than $1,250 if less is needed to round out to $10,000. How
many years will it take you to reach your $10,000 goal, and how large will the last deposit be?
Diketahui : FVN = $10.000 PMT = $1.250 I/YR = 12%
Ditanya : a. N? b. PMT tahun ke N?
Jawab I = :
a. 012% 1 2 3 4 … N
$1.250 $1.250 $1.250 $1.250 $?
FV= $10.000
(1+I)N 1
FV5 = PMT [ − ]
𝐼 𝐼
(1+0,12)N 1
$10.000= $1.250 [ − ]
0,12 0,12
(1,12)N
$10.000= $1.250 [ − 8,333]
0,12
$10.000= $10.416,67 (1,12)N - $10.416,25
$10.416,67 (1,12)N= $10.000 + $10.416,25
$20.416,25
1,12N =$10.416,67
1,12N = 1,96
ln 1,96
N =
ln 1,12
N = 5,94
=6
Maka waktu yang dibutuhkan untuk menghasilkan deposit sebesar $10.000 adalah
selama 6 tahun.

b. FV 5 tahun pertama
(1+I)N 1
FV5 = PMT [ − 𝐼]
𝐼

(1+0,12)⁵ 1
FV5 = $1.250 [ − ]
0,12 1,12
FV5 = $1.250 (14,6862 – 8,3333)
FV5 = $1.250 (6,3529)
FV5 = $7.941,125

FV melengkapi target 6 tahun

FV6 = PV (1 + I)1
FV6 = $7.941,25 (1 + 0,12)1
FV6 = $8.894,06

Jumlah deposit terakhir

PMT = $10.000 - $8.894,06
PMT = $1.105,94
= $1.106
Maka deposit terakhir yang harus dibayarkan sebesar $1.106

CHAPTER 6.

Q 6-7
Diketahui : rRF = 9% rM = 14% bi = 1,3
Ditanya :
 a. ri?
b. Bila (1) rRF naik menjadi 10% atau (2) turun menjadi 8%, slope SML tetap konstan.
Bagaimana pengaruhnya terhadap rM dan ri?
c. Asumsikan rRF tetap 9% tetapi (1) rM naik menjadi 16% atau (2) turun menjadi 13%.
Slope SML tidak konstan. Bagaimana hal ini mempengaruhi ri?
Jawab :
a. ri = r𝑅𝐹 + (r𝑀 − r𝑅𝐹)𝑏𝑖
ri = 9% + (14% − 9%)1,3
ri = 9% + (14% − 9%)1,3
ri = 9% + 6,5%
ri = 𝟏𝟓, 𝟓%

b. (1) SML konstan, rRF naik menjadi 10%

ri = r𝑅𝐹 + (r𝑀 − r𝑅𝐹)𝑏𝑖
ri = 10% + (15% − 9%)1,3
ri = 10% + (5%)1,3
ri = 10% + 6,5%
ri = 𝟏6, 𝟓%

(2) SML konstan, rRF turun menjadi 8%

ri = r𝑅𝐹 + (r𝑀 − r𝑅𝐹)𝑏𝑖
ri = 8% + (13% − 8%)1,3
ri = 8% + (5%)1,3
ri = 8% + 6,5%
ri = 𝟏4,𝟓%

c. (1) rRf tetap, rM naik menjadi 16%

ri = r𝑅𝐹 + (r𝑀 − r𝑅𝐹)𝑏𝑖
ri = 9% + (16% − 9%)1,3
ri = 9% + (7)1,3
ri = 9% + 9,1%
ri = 18,1%

(2) rRf tetap, rM turun menjadi 13%

ri = r𝑅𝐹 + (r𝑀 − r𝑅𝐹)𝑏𝑖
ri = 9% + (13% − 9%)1,3
ri = 9% + (4% )1,3
ri = 9% + 5,2%
ri = 𝟏4,2%
Q 6-9
Suppose you manage a $4 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $400.000 1,50
B $600.000 -0,50
C $1.000.000 1,25
D $2.000.000 0,75

required rate of return?

Diketahui : Fund= $4.000.000 rM= 14% rRF= 6%
Ditanya : rP= ?
Jawab :
a. rA = rRF + (rM – rRF)bA
rA = 6% + (14% – 6%)1,5
rA = 6% + 12%
rA = 18%
𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝐴
wA = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
$400.000
wA = $4.000.000
wA = 0,1

b. rB = rRF + (rM – rRF)bB

rB = 6% +((14% - 6%) x (-0,5))
rB = 6% - 4%
rB = 2%

𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝐵
wB = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
$600.000
wB = $4.000.000
wB = 0,15

c. rC = rRF + (rM – rRF)bC

rC = 6% + (14% - 6%) 1,25
rC = 6% + 10%
rC = 16%

𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝐶
wC = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
$1.000.000
wC = $4.000.000
wC = 0,25

d. rD = rRF + (rM – rRF)bD

rD = 6% + (14% - 6%) 0,75
 rD = 6% + 6%
rD = 12%

𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝐷
wD =
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
$2.000.000
wD = $4.000.000
wD = 0,5
e. bP = ∑𝑛𝑖=1 𝑤𝑖 𝑏𝑖
bP = wAbA + wBbB + wCbc + wDbD
bP = (0,1)(1,5) + (0,15)(-0,5) + (0,25)(1,25) + (0,5)(0,75)
bP = 0,15 – 0,075 + 0,3125 + 0,375
bP = 0,7625

d. rP = ∑𝑛𝑖=1 𝑤𝑖 𝑟𝑖
rp = wArA + wBrB + wCrc + wDrD
Rp = (0,1) (18%) +(0,15)(2%) + (0,25)(16%) + (0,5)(12%)
Rp = 1,8% + 0,3% + 4% + 6%
RP = 12,1%

Tugas yang diberikan di kelas

Soal : Perusahaan asuransi mewajibkan nasabah premi sebesar Rp 100.000 per bulan selama 30
tahun, sejak usia 25 tahun. Pada saat nasabah pensiun di usia 55 tahun. Asuransi akan
membayarkan 10x per tahun senilai Rp 1.000.000/bulan sampai dengan nasabah berusia
90 tahun (35 tahun).
Ditanya: Apakah asuransi ini baik untuk dimiliki? Asumsi suku bunga 12% per tahun.
Jawab:
Dengan asumsi di atas, maka:
a. Total Pembayaran Iuran Pensiun Oleh Nasabah sampai usia 55 tahun $36.000.000
b. Future Value dari Nilai Pembayaran yang dilakukan oleh nasabah
$352,991,377.41
(pada saat nasabah pensiun (usia 55 tahun), rumus =FV(1%,360,-100000,0,1))

c. Total Pembayaran Pensiun oleh Asuransi $350.000.000

d. Present Value dari total pembayaran pensiun dari asuransi $96.927.306,96
(nilai pembayaran asuransi di present value kan (35 tahun). Rumus=PV(1%,10*35,-1000000))
Selisih dari yang dibayarkan oleh nasabah dan asuransi ($256.064.070,45)
Karena pembayaran pensiun dari asuransi lebih kecil dari nilai iuran dari nasabah, maka nasabah
disarankan tidak mengambil produk ini.
 Financial Management Assigment Week 3
Problem Chapter : 5-15, 5-21, 7-10, 7-15, 9-10, 9-12

CHAPTER 5.
P 5-15
Absalom Motors’s 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in
30 years are callable 5 years from now at a price of $1,050. The bonds sell at a price of
$1,353.54, and the yield curve is flat. Assuming that interest rates in the economy are expected to
remain at their current level, what is the best estimate of the nominal interest rate on new bonds?
Diketahui : Coupon rate = 14% Par Value = $ 1.000 (semiannual)
FV = $ 1.050 Maturity = 30 tahun (5 tahun dari sekarang)
PV = $ 1.353,54
Ditanya : I/YR estimasi terbaik pada obligasi baru?
𝐶𝑜𝑢𝑝𝑜𝑛 𝑟𝑎𝑡𝑒 𝑥 𝑃𝑎𝑟 𝑣𝑎𝑙𝑢𝑒
Jawab : PMT = 2
0,14 𝑥 $ 1.000
PMT = 2
PMT = $70
Obligasi dijual pada harga premium, sehingga nilai coupon rate lebih tinggi
dibandingkan interest rate. Bila saham mendekati jatuh tempo maka
pengembalian yang dihasilkan lebih mendekati Yield to Call dibandingkan Yield
to Maturity. N = 5 x 2 = 10
Menggunakan Kalkulator Finansial :
N = 10
PV = - $ 1.353,54
FV = $ 1.050
PMT = $ 70
Maka I/YR = 3,24%
Sehingga YTC = 2 x 3,24% = 6,48%

Q 5-21
Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par
value, a 10% coupon rate, and semiannual interest payments.
a. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to
6%. At what price would the bonds sell?
b. Suppose that, 2 years after the initial offering, the going interest rate had risen to 12%. At what
price would the bonds sell?
c. Suppose, as in part a, that interest rates fell to 6% 2 years after the issue date. Suppose further
that the interest rate remained at 6% for the next 8 years. What would happen to the price of the
bonds over time?
Diketahui : Par Value = $ 1.000 Coupon Rate = 10% Maturity = 10 tahun
Ditanya : a. Setelah 2 tahun, I/YR turun menjadi 6%. Harga obligasi ketika dijual?
b. Setelah 2 tahun, I/YR naik menjadi 12%. Harga obligasi ketika dijual?
c. jika kondisinya seperti pada point (a) dan tetap selama 8 tahun mendatang, apa
yang terjadi pada harga obligasi?
Jawab :
𝐶𝑜𝑢𝑝𝑜𝑛 𝑟𝑎𝑡𝑒 𝑥 𝑃𝑎𝑟 𝑣𝑎𝑙𝑢𝑒
a. PMT =
2
 0,1 𝑥 $ 1.000
PMT = 2
PMT = $ 50

Menggunakan kalkulator finansial :

N = 8 x 2 = 16 (semiannual)
PMT = $ 50
FV = $ 1.000
6%
I/YR = 2 = 3%
Maka PV = $ 1.251,22
Jadi, harga obligasi ketika dijual sebesar $ 1.251,22

b. Menggunakan kalkulator finansial :

N = 8 x 2 = 16 (semiannual)
PMT = $ 50
FV = $ 1.000
12%
I/YR = = 6%
2
Maka PV = $ 898,94
Jadi, harga obligasi ketika dijual sebesar $ 898,94

c. Harga obligasi akan turun mendekati par value $ 1.000 dan akhirnya akan menjadi $
1.000 ketika jatuh tempo 8 tahun kemudian atau dalam period eke 16x pada 6 bulanan
(semiannual).

CHAPTER 7.
Q 7-10
The beta coefficient for Stock C is bC = 0.4 and that for Stock D is bD = -0.5. (Stock D’s beta is
negative, indicating that its rate of return rises whenever returns on most other stocks fall. There
are very few negative-beta stocks, although collection agency and gold mining stocks are
sometimes cited as examples.)
a. If the risk-free rate is 9% and the expected rate of return on an average stock is 13%, what are
the required rates of return on Stocks C and D?
b. For Stock C, suppose the current price, P0, is $25; the next expected dividend, D1, is $1.50;
and the stock’s expected constant growth rate is 4%. Is the stock in equilibrium? Explain, and
describe what would happen if the stock were not in equilibrium.
Diketahui : Saham C (bc) = 0,4 Saham D, bD = - 0,5
Ditanya : a. jika rRF = 9% dan rm = 13%, berapakah rC dan rD?
b. Pada saham C, bila P0 = $ 25, D1 = $ 1,50 dan g = 4% (konstan). Apakah
saham berada di equilibrium? Jelaskan apa yang akan terjadi bila saham tidak
berada pada equilibrium.
Jawab :
a. Saham C
rC = rRF + (rM – rRF)bC
 rC = 9% + (13% – 9%)0,4
rC = 9% + 1,6%
rC = 10,6%
Maka expected rate of return dari saham C sebesar 10,6%

Saham D
rD = rRF + (rM – rRF)bD
rD = 9% + (13% – 9%) (-0,5)
rD = 9% + 2%
rD = 7%
Maka expected rate of return dari saham D sebesar 7%

b. Required rate of return (ri) saham C :

𝐷1
rC = 𝑃0 + 𝑔
$ 1,25
rC = + 0,04
$ 25
rc = 0,06 + 0,04
rC = 10%
Required of return saham C sebesar 10% sedangkan return yang diharapkan oleh
investor sebesar 10,6%, maka saham C tidak dalam posisi equilibrium. Bila posisi
tidak dalam equilibrium maka investor kemungkinan akan menjual saham C.

Q 7-15
Investors require a 15% rate of return on Brooks Sisters’s stock (rs = 15%).
a. What would the value of Brooks’s stock be if the previous dividend was D0 = $2 and if
investors expect dividends to grow at a constant annual rate of (1) -5%, (2) 0%, (3) 5%,
and (4) 10%?
b. Using data from part a, what is the Gordon (constant growth) model’s value for Brooks
Sisters’s stock if the required rate of return is 15% and the expected growth rate is (1)
15% or (2) 20%? Are these reasonable results? Explain.
c. Is it reasonable to expect that a constant growth stock would have g > rs?
Diketahui : rS = 15%
Ditanya : a. Jika D0 = $ 2, berapa P0 jika investor mengharapkan dividen tumbuh pada
annual rate yang konstan -5%, 0%, 5%, dan 10%?
b. Dengan data dari (a), berapakah P0 bila rs = 15% dan g1 = 15% atau g2 = 20%.
Apakah hasilnya masuk akal?
c. Apakah masuk akal mengharapkan g > rs?
Jawab :
a. Nilai Saham Brooks bila g = -5%
𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1−0,05)
P0 = 0,15 −(−0,05)
 $2 (0,95)
P0 = 0,2
P0 = $ 9,5

Nilai Saham Brooks bila g = 0%

𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1−0)
P0 = 0,15 −0
$2
P0 = 0,15
P0 = $ 13,33

Nilai Saham Brooks bila g = 5%

𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1+ 0,05)
P0 = 0,15 − 0,05
$2,1
P0 =
0,1
P0 = $ 21

Nilai Saham Brooks bila g = 10%

𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1+ 0,1)
P0 = 0,15 − 0,1
$2,2
P0 = 0,05
P0 = $ 44

b. Nilai Saham Brooks bila g = 15%

𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1+ 0,15)
P0 = 0,15 − 0,15
$2,3
P0 = 0
P0 = Undefined

Nilai Saham Brooks bila g = 20%

𝐷0 (1+𝑔)
P0 = 𝑟𝑠−𝑔
$2 (1+ 0,2)
P0 = 0,15 − 0,2
$2,4
P0 = −0,05
P0 = $ 48 (Negative value)
 Hasil perhitungan memberikan hasil yang tidak layak karena nilai required rate of
return harusnya sama atau kurang dari Expected growth rate.

c. Bila required rate of return (rs) konstan dan lebih besar dari growth rate (g), harga
saham yang dihasilkan tidak terbatas. Karena tidak ada perusahaan yang bernilai
tak terbatas, maka selamanya tidak mungkin g > rs.

CHAPTER 9.
Q 9-10
The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in
the future. Shelby’s common stock sells for $23 per share, its last dividend was $2.00, and the
company will pay a dividend of $2.14 at the end of the current year
a. Using the discounted cash flow approach, what is its cost of equity?
b. If the firm’s beta is 1.6, the risk-free rate is 9%, and the expected return on the market is 13%,
then what would be the firm’s cost of equity based on the CAPM approach?
c. If the firm’s bonds earn a return of 12%, then what would be your estimate of rs using the
over-own-bond-yield-plus-judgmental-risk-premium approach? (Hint: Use the midpoint of the
risk premium range.)
d. On the basis of the results of parts a through c, what would be your estimate of Shelby’s cost
of equity current year.
Diketahui : g = 7% P0 = $23 D0 = $2 D1 = $ 2,14
Ditanya : a. rs ? (Pendekatan DCF)
b. Bila bi = 1.6, rRF = 9% dan rM = 13%, tentukan rs? (Pendekatan CAPM)
c. Bila bond yield = 12%, tentukan rs ? (Pendekatan Over-own-bond-yield-
plusjudgmental-risk-premium)
d. Atas hasil bagian a – c, hitung estimasi rs?
Jawab :
a. Pendekatan DCF :
𝐷1
rS = 𝑃0 + 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑔
$2,14
rS = $23
+ 0,07
rS = 0,093 + 0,07
rS = 0,163
rS = 16,3%

b. Pendekatan CAPM :
rs = rRF + (rM – rRF)bi
rs = 9% + (13% – 9%)(1,6)
rS = 9% + 6,4%
rS = 15,4%
c. Pendekatan Over-Own-Bond-Yield-Plus-Judgmental-Risk-Premium
rs = Company’s own bond yield + judgmental risk premium
 rs = 12% + (rM – rRF)
rs = 12% + (13% – 9%)
rs = 12% + 4%
rs = 16%

16,3%+15,4%+16%
d. rs = 3
47,7%
rs = 3
rS = 15,9%

Q 9-12
Spencer Supplies’ stock is currently selling for $60 a share. The firm is expected to earn $5.40
per share this year and to pay a year-end dividend of $3.60.
a. If investors require a 9% return, what rate of growth must be expected for Spencer?
b. If Spencer reinvests earnings in projects with average returns equal to the stock’s expected rate
of return, then what will be next year’s EPS? (Hint: g = ROE × Retention ratio.)
Diketahui : P0 = $60 EPS = $5,40 D1 = $3,60
Ditanya : a. bila rs = 9%, g?
b. Bila Spencer menginvestasikan kembali ke dalam proyek dengan ŕs = ṝs ,
tentukan EPS1? (g = ROE x Retention ratio)

Jawab :
a. Expected growth :
𝐷1
rS = 𝑃0 + 𝑔
$ 3,60
0,09 = $ 60 + 𝑔
0,09 = 0,06 + 𝑔
g = 0,09 - 0,06
g = 0,03
g = 3%

b. EPS tahun depan :

EPS1 = EPS0 (1 + g)
EPS1 = $ 5,40(1 + 0,03)
EPS1 = $ 5,562
 Financial Management Assigment Week 4
Problem Chapter : 10-09, 10-12, 11-12, 11-14, 11-15

CHAPTER 10.
10-9
Davis Industries must choose between a gas-powered and an electric-powered forklift truck for
moving materials in its factory. Since both forklifts perform the same function, the firm will choose
only one. (They are mutually exclusive investments). The electric-powered truck will cost more,
but it will be less expensive to operate, it will cost $22.000, whereas the gas-powered truck will
cost $17.500. The cost of capital that applies to both investment is 12%. The life for both types of
truck is estimated to be 6 years, during which time the net cash flows for the electric-powered
truck will be $6.290 per year and those for the gas-powered truck will be $5.000 per year. Annual
net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck,
and decide which to recommend.
Answer:
Electric-powered
NPVE = -$22.000 + $6.290[(1/i) – (1/(i x (1+i)n)]
= -$22.000 + $6.290[(1/0,12) – (1/(0,12 x (1+0,12)6)]
= -$22.000 + $6.290(4,1114)
= -$22.000 + $25.861
= $3.861
Financial calculator: Input the appropriate cash flows into the cash flow register, input I/YR =
12, and then solve for NPV = $3,861.
Financial calculator: Input the appropriate cash flows into the cash flow register and then solve
for IRR = 18%.

Gas powered
NPVG = -$17.500 + $5.000[(1/i) – (1/(i x (1+i)n)]
= -$17.500 + $5.000[(1/0,12) – (1/(0,12 x (1+0,12)6)]
= -$17.500 + $5.000(4,1114)
= -$17.500 + $25.557
= $3.057
Financial calculator: Input the appropriate cash flows into the cash flow register, input I/YR =
12, and then solve for NPV = $3,057.
Financial calculator: Input the appropriate cash flows into the cash flow register and then solve
for IRR = 17.97% ≈ 18%.
The firm should purchase the electric-powered forklift because it has a higher NPV than the
gas-powered forklift. The company gets a high rate of return (18% > r = 12%) on a larger
investment.

10-12
After discovering a new gold vein in the Colorado mountains, CTC Mining Corporation must
decide whether to go ahead and develop the deposit. The most cost effective method of mining
gold is sulfuric acid extraction,a process that could result in environmental damage. Before
proceeding with the extraction, CTC must spend $900.000 for new mining equipment and pay
$165.000 for its installation. The gold mined will net the firm an estimated $350.000 each year for
the 5-year life of the vein. CTC’s cost of capital is 14%. For the purposes of this problem, assume
that the cash inflows occur at the end of the year.
a. What are the project’s NPV and IRR?
b. Should this project the undertaken if environmental impact were npt a consideration?
c. How should environmental effects be considered when evaluating this, or any other,
project? How might these concepts affect the decision in part b?
Answer:
a. Purchase price $900.000
Installation $165.000
Initial outlay $1.065.000

CF0 = -1.065.000 ; CF1-5 = 350.000 ; I/YR = 14 ; NPV = ?

Financial calculator : NPV = $136.578 ; IRR = 19,22%

b. Ignoring environmental concerns, the project should be undertaken because its NPV is
positive and its IRR is greater than the firm’s cost of capital.

c. Environmental effects could be added by estimating penalties or any other cash outflows
that might be imposed on the firm to help return the land to its previous state (if possible).
These outflows could be so large as to cause the project to have a negative NPV—in which
case the project should not be undertaken.

CHAPTER 11.
11-12
Madison Manufacturing is considering a new machine that costs $250.000 and would reduce pre-
tax manufacturing costs by $90.000 annually. Madison would use the 3-year MACRS method to
depreciate the machine, and management thinks the machine would have a value of $23.000 at the
end of its 5-year operating life. The applicable depreciation rates are 33%, 45%, 15%, and 7%, as
discussed in Appendix 11A. Working capital would increase by $25.000 initially, but it would be
recovered at the end of the project’s 5-year life. Madison’s marginal tax rate is 40%, and a 10%
WACC is appropriate for the project.
a. Calculate the project’s NPV, IRR, MIRR, and payback.
b. Assume management is unsure about the $90.000 cost savings this figure could deviate by
as much as plus or minus 20%. What would the NPV be under each of these extremes?
c. Supoose the CFO wants you to do a scenario analysi with different values dor the cost
savings, the machine’s salvage value, and the working capital (WC) requirement. She asks
you to use the following probabilities and values in the scenario analysis:

Scenario Probability Cost Salvage WC

Savings Value
Worst 0,35 $72.000 $18.000 $30.000
case
Base case 0,35 $90.000 $23.000 $25.000
 Best case 0,30 $108.000 $28.000 $20.000

Calculate the project’s expected NPV, its standard deviation, and its coefficients of variation.
Would you recommend that the project be accepted?
Answer:
a.
0 1 2 3 4 5
Initial investment ($250.000)
Net working capital ($25.000)

Cost savings $90.000 $90.000 $90.000 $90.000 $90.000

Depreciation 82.500 112.500 37.500 17.500 0
Oper. inc. before taxes $7.500 ($22.500) $52.500 $72.500 $90.000
Taxes (40%) 3.000 (9.000) 21.000 29.000 36.000
Oper. inc. (AT) $4.500 ($13.500) $31.500 $43.500 $54.000
Add: Depreciation 82.500 112.500 37.500 17.500 0
Oper. CF $87.000 $99.000 $69.000 $61.000 $54.000

Return of NWC $25.000

Sale of Machine 23.000
Tax on sale (40%) (9.200)
Project cash flows ($275.000) $87.000 $99.000 $69.000 $61.000 $92.800

NPV = $37.035,13
IRR = 15,30%
MIRR = 12,81%
Payback= 3,33 years
Notes: Depreciation Schedule, Basis = $250.000
MACRS Rate x Basis =
Beg. Bk. MACRS Ending
Year Depreciation
Value Rate BV
1 $250.000 0,33 $82.500 $167.500
2 167.500 0,45 112.500 55.000
3 55.000 0,15 37.500 17.500
4 17.500 0,07 17.500 0
$250.000

b. If savings increase by 20%, then savings will be (1,2)($90.000) = $108.000.

If savings decrease by 20%, then savings will be (0,8)($90.000) = $72.000.

1. Savings increase by 20%:

0 1 2 3 4 5
Initial investment ($250.000)
 Net working capital ($25.000)

Cost savings $108.000 $108.000 $108.000 $108.000 $108.000

Depreciation 82.500 112.500 37.500 17.500 0
Oper. inc. before taxes $25.500 ($4.500) $70.500 $90.500 $108.000
Taxes (40%) 10.200 (1.800) 28.200 36.200 43.200
Oper. inc. (AT) $15.300 ($2.700) $42.300 $54.300 $64.800
Add: Depreciation 82.500 112.500 37.500 17.500 0
Oper. CF $97.800 $109.800 $79.800 $71.800 $64.800

Return of NWC $25.000

Sale of Machine 23.000
Tax on sale (40%) (9.200)
Project cash flows ($275.000) $97.800 $109.800 $79.800 $71.800 $103.600

NPV = $77.975,63

2. Savings decrease by 20%:

0 1 2 3 4 5
Initial investment ($250.000)
Net working capital ($25.000)

Cost savings $72.000 $72.000 $72.000 $72.000 $72.000

Depreciation 82.500 112.500 37.500 17.500 0
Oper. inc. before taxes ($10.500) ($40.500) $34.500 $54.500 $72.000
Taxes (40%) (4.200) (16.200) 13.800 21.800 28.800
Oper. inc. (AT) ($6.300) ($24.300) $20.700 $32.700 $43.200
Add: Depreciation 82.500 112.500 37.500 17.500 0
Oper. CF $76.200 $88.200 $58.200 $50.200 $43.200

Return of NWC $25.000

Sale of Machine 23.000
Tax on sale (40%) (9.200)
Project cash flows ($275.000) $76.200 $88.200 $58.200 $50.200 $82.000

NPV = -$3.905,37

c. Worst-case scenario:
0 1 2 3 4 5
Initial investment ($250.000)
Net working capital ($25.000)
 Cost savings $72.000 $72.000 $72.000 $72.000 $72.000
Depreciation 82.500 112.500 37.500 17.500 0
Oper. inc. before taxes ($10.500) ($40.500) $34.500 $54.500 $72.000
Taxes (40%) (4.200) (16.200) 13.800 21.800 28.800
Oper. inc. (AT) ($6.300) ($24.300) $20.700 $32.700 $43.200
Add: Depreciation 82.500 112.500 37.500 17.500 0
Oper. CF $76.200 $88.200 $58.200 $50.200 $43.200

Return of NWC $30.000

Sale of Machine 18.000
Tax on sale (40%) (7.200)
Project cash flows ($275.000) $76.200 $88.200 $58.200 $50.200 $84.000

NPV = -$7.663,52
Base-case scenario: This was worked out in Part a. NPV = $37.035,13.
Best-case scenario:
0 1 2 3 4 5
Initial investment ($250.000)
Net working capital ($25.000)

Cost savings $108.000 $108.000 $108.000 $108.000 $108.000

Depreciation 82.500 112.500 37.500 17.500 0
Oper. inc. before taxes $25.500 ($4.500) $70.500 $90.500 $108.000
Taxes (40%) 10.200 (1.800) 28.200 36.200 43.200
Oper. inc. (AT) $15.300 ($2.700) $42.300 $54.300 $64.800
Add: Depreciation 82.500 112.500 37.500 17.500 0
Oper. CF $97.800 $109.800 $79.800 $71.800 $64.800

Return of NWC $20.000

Sale of Machine 28.000
Tax on sale (40%) (11.200)
Project cash flows ($275.000) $97.800 $109.800 $79.800 $71.800 $101.600

NPV = $81.733,79

Prob. X
Prob. NPV
NPV
Worst-case 0,35 ($7.663,52) ($2.682,23)
Base-case 0,35 37.035,13 12.962,30
Best-case 0,30 81.733,79 24.520,14
$34.800,21

σNPV = [(0.35)(-$7,663.52 – $34,800.21)2 + (0.35)($37,035.13 – $34,800.21)2 +

 (0.30)($81,733.79 – $34,800.21)2 ] ½
= [$631,108,927.93 + $1,748,203.59 + $660,828,279.49]½
= $35,967.84

CV = $35,967.84/$34,800.21
= 1.03

11-14
The Balboa Bottling Company is contemplating the replacement of one of its bottling machines
with a newer and more efficient one. The old machine has a book value of $600.000 and a
remaining useful life of 5 years. The firm does not expect to realize any return from scrapping the
old machine in 5 years, but it can sell it now ro another firm in the industry for $265.000. the old
machine is being depreciated by $120.000 per year, using the straight line method.
The new machine has a purchase price of $1.175.000, an estimated useful life and MACRS class
life of 5 years, and an estimated salvage value of $145.000. The applicable depreciation rates are
20%, 32%, 19%, 12%, 11%, and 6%. It is expected to economize on electric power usage, labor,
and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of
$255.000 will be realized if the new machine is installed. The company’s marginal tax rate is 35%,
and it has a 12% WACC.
a. What is the initial net cash flow if the new machine is purchased and the old one is
replaced?
b. Calculate the annual depreciation allowances for both machines, and compute the change
in the annual depreciation expense if the replacement is made.
c. What are the incremental net cash flows in Years 1 through 5?
d. Should the firm purchase the new machine? Support your answer.
e. In general, how would each of the following factors affect the investment decision, and
how should each be treated?
1) The expected life of the existing machine decreases.
2) The WACC is not constant but is increasing as Balboa adds more projects into its
capital budget for the year.
Answer:
a. Cost of new machine ($1.175.000)
Salvage value, old 265.000
Savings due to loss on sale ($600.000 - $265.000) x 0,35 117.250
Cash outlay for new machine ($792.750)

b.
Recovery Depreciable Depreciation Depreciation Change in
Year Percentage Basis Allowance. New Allowance. Old Depreciation
1 20% $1.175.000 $235.000 $120.000 $115.000
2 32 1.175.000 376.000 120.000 256.000
3 19 1.175.000 223.250 120.000 103.250
4 12 1.175.000 141.000 120.000 21.000
5 11 1.175.000 129.250 120.000 9.250
 c. CFt = (∆Operating expenses)(1 – T) + (∆Depreciation)(T).

CF1 = ($255.000)(0,65) + ($115.000)(0,35)

= $165.750 + $40.250
= $206.000.

CF2 = ($255.000)(0,65) + ($256.000)(0,35)

= $165.750 + $89.600
= $255.350.

CF3 = ($255.000)(0,65) + ($103.250)(0,35)

= $165.750 + $36.138
= $201.888.

CF4 = ($255.000)(0,65) + ($21.000)(0,35)

= $165.750 + $7.350
= $173.100.

CF5 = ($255.000)(0,65) + ($9.250)(0,35)

= $165.750 + $3.238
= $168.988.

d. A time line of the cash flows looks like this:

0 1 2 3 4 5
(792.750) 206.000 255.350 201.888 173.100 168.988
118.925
287.913
NPV = $11.820
Since the NPV is positive, the project should be accepted. To buy the new machine would increase
the value of the firm by $11.820.
*After-tax salvage of new machine at Year 5 is calculated as follows:
Book value = 0.06($1,175,000) = $70,500.
Gain = $145,000 – $70,500 = $74,500.
Tax = 0.35($74,500) = $26,075.
AT salvage value of new machine = $145,000 – $26,075 = $118,925.
e. 1. If the expected life of the old machine decreases, the new machine will look better as
cash flows attributable to the new machine would increase. On the other hand, a serious
complication arises: the two projects now have unequal lives, and an estimate must be
made about the action to be taken when the old machine is scrapped. Will it be replaced,
and at what cost and with what savings?
2. The higher capital cost should be used in the analysis.
11-15
The Bartram Pulley Company (BPC) must decide between two mutually exclusive investment
projects. Each project costs $6.750 and has an expected life of 3 years. Annual net cash flows from
each project begin 1 year after the intial investment is made and have the following probability
distributions:
Project A Project B
Net Cash Net Cash
Probability Flows Probability Flows
0,2 $ 6.000 0,2 $0
0,6 $ 6.750 0,6 $ 6.750
0,2 $ 7.500 0,2 $ 18.000
BPC has decided to evaluate the riskier project at a 12% rate and the less risky project at a 10%
rate.
a. What is the expected value of the annual net cash flows from each project? What is the
coefficient of variation (CV)? (Hint: σB = $ 5.798 and CVB = 0,76.)
b. What is the risk adjusted NPV of each project?
c. If it were known that Project B is negatively correlated with other cash flows of the firm
whereas Project A is positively correlated, how would this affect the decision? If Project
B’s cash flows were negatively correlated with gross domestic product (GDP), would that
influence your assessment of its risk?
Answer:
a. Expected annual cash flows:
Project A:
Probable
Cash
Probability x Cash Flow = Flow
0,2 6.000 1.200
0,6 6.750 4.050
0,2 7.500 1.500
Expected annual cash flow = 6.750

Project B:

Probable
Cash
Probability x Cash Flow = Flow
0,2 0 0
0,6 6.750 4.050
0,2 18.000 3.600
Expected annual cash flow = 7.650

Coefficient of variation:
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝜎𝑁𝑉𝑃
CV = =
𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑁𝑃𝑉
 Project A: σA = √(−$750)2 (0,2) + ($0)2 (0,6) + ($750)2 (0,2) = $𝟒𝟕𝟒, 𝟑𝟒

Project B: σB = √(−$7.650)2 (0,2) + (−$900)2 (0,6) + ($10.350)2 (0,2) =

$𝟓. 𝟕𝟗𝟕, 𝟖𝟒

CVA = $474,34/$6.750
= 0,0703.

CVB = $5.797,84/$7.650
= 0,7579
b. Project B is the riskier project because it has the greater variability in its probable cash
flows, whether measured by the standard deviation or the coefficient of variation. Hence,
Project B is evaluated at the 12 percent cost of capital, while Project A requires only a 10
percent cost of capital.

Project A: With a financial calculator, input the appropriate cash flows into the cash flow
register, input I/YR = 10, and then solve for NPV = $10.036,25
Project B: With a financial calculator, input the appropriate cash flows into the cash flow
register, input I = 12, and then solve for NPV = $11.624,01.

Project B has the higher NPV; therefore, the firm should accept Project B.

c. The portfolio effects from Project B would tend to make it less risky than otherwise. This
would tend to reinforce the decision to accept Project B. Again, if Project B were negatively
correlated with the GDP (Project B is profitable when the economy is down), then it is less
risky and Project B’s acceptance is reinforced.
 Financial Management Assigment Week 5
Problem Chapter 12: 12-7, 12-9

CHAPTER 12.

12-7
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located
warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help
them set up their new computers. Upton’s balance sheet as of December 31, 2010, is shown here
(millions of dollars):

Sales for 2010 were $350 million and net income for the year was $10.5 million, so the firm’s
profit margin was 3.0%. Upton paid dividends of $4.2 million to common stockholders, so its
payout ratio was 40%. Its tax rate is 40%, and it operated at full capacity. Assume that all
assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio
remain constant in 2011.
a. If sales are projected to increase by $70 million, or 20%, during 2011, use the AFN
equation to determine Upton’s projected external capital requirements.
b. Using the AFN equation, determine Upton’s self-supporting growth rate. That is, what is
the maximum growth rate the firm can achieve without having to employ nonspontaneous
external funds?
c. Use the forecasted financial statement method to forecast Upton’s balance sheet for
December 31, 2011. Assume that all additional external capital is raised as a bank loan at
the end of the year and is reflected in notes payable (because the debt is added at the end
of the year, there will be no additional interest expense due to the new debt). Assume
Upton’s profit margin and dividend payout ratio will be the same in 2011 as they were in
2010. What is the amount of notes payable reported on the 2011 forecasted balance sheets?
(Hint: You don’t need to forecast the income statements because you are given the
projected sales, profit margin, and dividend payout ratio; these figures allow you to
calculate the 2011 addition to retained earnings for the balance sheet.)

Diketahui :
S0 = $ 350,000,000 Net Income 2010 = $ 10,500,000
Profit Margin = 3% Paid dividends to common stakeholder = $ 4,200,000
Payout ratio = 40% Tax rate = 40%

Ditanya :
a. AFN bila Sales naik $ 70,000,000?
 b. Tentukan self-supporting g?
c. Hitung Notes Payable dengan menggunakan Financial Statement forecast per December
31, 2011?(Asumsi tidak ada tambahan interest expense, dan profit margin serta payout ratio
sama seperti tahun 2010)

Jawab :
a. Menghitung AFN bila sales naik $ 70,000,000:

Input Definitions
S0 $350.000.000 Sales 2010
S1 $420.000.000 Sales 2011
ΔS $70.000.000 Change in sales (S1-S0)
G 20% Forecasted growth rate in sales
A0* $122.500.000 Total Assets 2010
A0*/S0 35% Required assets per dollar of sales
Spontaneous assets 2010 (Payables +
L0* $17.500.000
Accruals)
L0*/S0 0,05 Spontaneous liabilities per dollar of sales
M 3% 2010 Profit Margin (NI/Sales)
POR 40% 2010 Payout ratio (Dividends in 2010/NI)

𝐴𝐹𝑁 = (𝐴0*/𝑆0)∆𝑆 − (𝐿0*/𝑆0)∆𝑆 − 𝑆1𝑥 𝑀 𝑥 (1 − 𝑃𝑂𝑅)

𝐴𝐹𝑁 = 0.35($ 70,000,000) − 0.05 ($ 70,000,000) − ($ 420,000,000)(0.03)(1 − 0.4)
𝐴𝐹𝑁 = $ 24,500,000 − $ 3,500,000 − $ 7,560,000
𝑨𝑭𝑵 = $ 𝟏𝟑,𝟎,𝟎𝟎0

b. Menghitung Self – supporting g :

M(1−POR)(S0)
Self – supporting g = A0 ∗ −L0 ∗ −M(1−POR)(S0)
(0.03)(1 − 0.4)($ 350,000,000)
Self – supporting g = $ 122,500,000 − $ 17,500,000 − (0.03)(1 − 0.4)($ 350,000,000)
($ 6,300,000)
Self – supporting g = $ 122,500,000 − $ 17,500,000 − $ 6,300,000
($ 6,300,000)
Self – supporting g = $ 98,700,00
Self – supporting g = 0.0638
Self – supporting g = 𝟔.𝟑𝟖%

c. Menghitung Notes payable :

 Upton Computer Pro Forma Balance Sheet December 31, 2011 (Million of Dollars)

Forecast Basis Forecast Pro Forma Pro Forma 2011

2010 Addition Financing
2011 Factor 2011 After Financing
Assets
Cash $3,50 0,01 0,2 $4,20 $4,20
Receivables $26,00 0,0743 0,2 $31,20 $31,20
Inventory $58,00 0,166 0,2 $69,60 $69,60
Total Current Assets $87,50 $105,00 $105,00
Net Fixed Asset $35,00 0,1 0,2 $42,00 $42,00
Total Assets $122,50 $147,00 $147,00

Liabilities and Equity

Account payable $9,00 0,0257 0,2 $10,80 $10,80
Notes payable $18,00 $18,00 $13,44 $31,44
Accrual $8,50 0,0243 0,2 $10,20 $10,20
Total current liabilities $35,50 $39,00 $52,44
Mortgage Loan $6,00 $6,00 $6,00
Common Stock $15,00 $15,00 $15,00
Retained Earnings $66,00 7.56*(2010 + Add in to RE) $73,56 $73,56
Total liabilities and equity $122,50 $133,56 $147,00

AFN = (TA-Planned liabilities and equity) $13,44

* M = NI/Sales = $10.5/$350=3%
POR = Dividends/NI = $4.2/$10.5=40%
NI = NI x (1+g) x (M) = ($350)(1+0.2)(0.03) = $12.6
Addition to RE = NI-DIV = $12.6 - $12.6(0.4) = $7.56

Maka Notes payable berdasarkan Pro Forma Balance Sheet December 31, 2011 sebesar
$31,44 M.

12-9
Garlington Technologies Inc.’s 2010 financial statements are shown below:

Suppose that in 2011 sales increase by 10% over 2010 sales and that 2011 dividends will increase
to $112,000. Forecast the financial statements using the forecasted financial statement method.
Assume the firm operated at full capacity in 2010. Use an interest rate of 13%, and assume that
any new debt will be added at the end of the year (so forecast the interest expense based on the
debt balance at the beginning of the year). Cash does not earn any interest income. Assume that
the AFN will be in the form of notes payable.

Diketahui :
g = 10 %
S2010 = $ 3,600,000
Interest rate = 13%

Ditanya :
Forecast Financial Statement menggunakan metode forecasted financial statement?

Jawab :
Forecast Income Statement 2011
Garlington Technologies Inc. Pro Forma Income Statement December 31, 2011
Pro Forma
2010 Forecast Basis
2011
$3.600.00
Sales (1+0.1) x Sales 2010 $3.960.000
0
Operating $3.279.72
(1+0.1) x Sales 2010 (Operating Cost) $3.607.692
Costs 0
EBIT $320.280 $352.308
Interest $18.280 0.13 x Sales 2010 (Notes payable) $20.280
EBT $302.000 $332.028
Taxes (40%) $120.800 $132.811
Net Income $181.200 $199.217
Dividends $108.000 Given in the problem as $112,000 $112.000

Addition to RE $73.200 $87.217

Forecast Balance Sheet 2011

 Garlington Technologies Inc. Pro Forma Balance Sheet December 31, 2011
Forecast Basis Pro Forma 2011
2010 Factors Basis 2011 Addition Pro Forma 2011 AFN Effect
% 2011 Sales with AFN
Assets
Cash $ 180.000,00 0,05 10% (1+ Factors) x 2010 Amount $ 198.000,00 $ 198.000,00
Receivables $ 360.000,00 0,1 10% (1+ Factors) x 2010 Amount $ 396.000,00 $ 396.000,00
Inventory $ 720.000,00 0,20 10% (1+ Factors) x 2010 Amount $ 792.000,00 $ 792.000,00
Total Current Assets $ 1.260.000,00 $ 1.386.000,00 $ 1.386.000,00
Fixed Asset $ 1.440.000,00 0,4 10% (1+ Factors) x 2010 Amount $ 1.584.000,00 $ 1.584.000,00
Total Assets $ 2.700.000,00 $ 2.970.000,00 $ 2.970.000,00

Liabilities and Equity

Account payable $ 360.000,00 0,1 10% (1+ Factors) x 2010 Amount $ 396.000,00 $ 396.000,00
Notes payable $ 156.000,00 NP 2020 + Additional Notes to Balance $ 156.000,00 $ 128.783,00 $ 284.783,00
Accrual $ 180.000,00 0,05 10% (1+ Factors) x 2010 Amount $ 198.000,00 $ 198.000,00
Total current liabilities $ 696.000,00 $ 750.000,00 $ 878.783,00
Common Stock $ 1.800.000,00 $ 1.800.000,00 $ 1.800.000,00
Retained Earnings $ 204.000,00 $ 87.217,00 $ 291.217,00 $ 291.217,00
Total liabilities and equity $ 2.700.000,00 $ 2.841.217,00 $ 2.970.000,00

AFN = $128.783

Maka dari forecast Balance Sheet 2011 didapatkan nilai AFN sebesar $ 128,783 dan Notes
payable sebesar $ 284,783
 Financial Management Assigment Week 6
Problem Chapter 14: 14-6, 14-7, 14-10 Chapter 15: 15-5, 15-9.

CHAPTER 14.

14-6
Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar
heating system. To meet this demand, management plans to expand production capacity by 40%
with a $10 million investment in plant and machinery. The firm wants to maintain a 40% debt-to-
total-assets ratio in its capital structure; it also wants to maintain its past dividend policy of
distributing 45% of last year’s net income. In 2010, net income was $5 million. How much external
equity must Northern Pacific seek at the beginning of 2011 in order to expand capacity as desired?

Diketahui:
Backlog of order = 6 bulan
Debt Ratio = 40%
Investment = $ 10,000,000
Payout ratio = 45%
Net Income 2010 = $ 5,000,000

Ditanya:
Tentukan External Equity pada awal tahun 2011 untuk memperluas kapasitas yang diingingkan?

Jawab :
• 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑥 (1 − 𝑃𝑎𝑦𝑜𝑢𝑡 𝑅𝑎𝑡𝑖𝑜)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 5,000,000 𝑥 (1 − 0.45)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 5,000,000 𝑥 (0.55)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 2,750,000

• 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑥 (1 − 𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜)

𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 10,000,000 𝑥 (1 − 0.4)
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 10,000,000 𝑥 (0.6)
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 6,000,000

• 𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 − 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠

𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 6,000,000 − $ 2.750,000
𝑬𝒙𝒕𝒆𝒓𝒏𝒂𝒍 𝑬𝒒𝒖𝒊𝒕𝒚 = $ 𝟑,𝟐𝟓𝟎,𝟎𝟎𝟎

Maka External Equity pada awal tahun 2011 untuk memperluas kapasitas yang diinginkan
sebesar $ 3,250,000

14-7
Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is
$3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after
the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would
you expect the stock price to be?
Diketahui:
2-for-1 stock split
N = 2,000
EPS = $10
DPS = $3
P0 = $80

Ditanya:
Hitung nadjusted, EPSadjusted, DPSadjusted, dan Padjusted?

Jawab:
𝑛adjusted = 𝑛 𝑥 2
𝑛adjusted = 2,000 𝑥 2
𝒏adjusted = 𝟒, 𝟎𝟎𝟎
Jadi jumlah saham setelah di split adalah 4,000 lembar
𝐸𝑃𝑆
𝐸𝑃𝑆adjusted =
2
$10
𝑬𝑷𝑺adjusted =
2
𝑬𝑷𝑺adjusted = $ 𝟓
EPS setelah saham di split adalah sebesar $ 5
𝐷𝑃𝑆
𝐷𝑃𝑆adjusted = 2
3
𝑫𝑷𝑺adjusted = 2
𝑫𝑷𝑺adjusted = $𝟏. 𝟓𝟎
DPS setelah saham di split sebesar $ 1.50
𝑃𝑜
𝑃adjusted =
2
$80
𝑷adjusted =
2
𝑷adjusted = $ 𝟒𝟎
Jadi ekspektasi harga saham setelah di split sebesar $ 40 per lembar

14-10
In 2010, the Keenan Company paid dividends totaling $3.6 million on net income of $10.8 million.
The year was a normal one, and earnings have grown at a constant rate of 10% for the past 10
years. However, in 2011, earnings are expected to jump to $14.4 million, and the firm expects to
have profitable investment opportunities of $8.4 million. It is predicted that Keenan will not be
able to maintain the 2011 level of earnings growth—the high 2011 projected earnings level is due
to an exceptionally profitable new product line to be introduced that year—and then the company
will return to its previous 10% growth rate. Keenan’s target debt ratio is 40%.
a. Calculate Keenan’s total dividends for 2011 if it follows each of the following policies:
1. Its 2011 dividend payment is set to force dividends to grow at the long-run growth rate
in earnings.
2. It continues the 2010 dividend payout ratio.
3. It uses a pure residual policy with all distributions in the form of dividends (40% of the
 $8.4 million investment is financed with debt).
4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based
on the long-run growth rate and the extra dividend being set according to the residual
policy.
b. Which of the preceding policies would you recommend? Restrict your choices to the ones
listed, but justify your answer.
c. Does a 2011 dividend of $9 million seem reasonable in view of your answers to parts a and
b? If not, should the dividend be higher or lower.

Diketahui:
Dividends2010 (D0) = $3.6 M
Net Income2010 = $10.8 M
g = 10 % (konstan selama 10 tahun)
Expected Net Income2011 = $ 14.4 M
Expected Investment2011 = $ 8.4 M
Debt ratio = 40%

Ditanya:
a. Hitung D1 berdasarkan kebijakan berikut, bila :
1. Pembayaran dividen 2011 ditetapkan untuk memaksa dividen tumbuh pada tingkat
pertumbuhan jangka panjang dalam pendapatan.
2. Melanjutkan rasio pembayaran dividen 2010.
3. Menggunakan kebijakan residual murni dengan semua distribusi dalam bentuk
dividen (Debt ratio = 40% dari $8.4 M)
4. Menggunakan kebijakan dividen-plus-ekstra reguler, dengan dividen reguler
didasarkan pada tingkat pertumbuhan jangka panjang dan dividen tambahan
ditetapkan sesuai dengan kebijakan residual.
b. Kebijakan manakah yang anda rekomendasikan? Jelaskan.
c. Apakah D1 sebesar $ 9 juta tampak masuk akal mengingat jawaban untuk bagian a dan b?
Jika tidak, apakah dividennya harus lebih tinggi atau lebih rendah?

Jawab:
a. Menghitung Dividen
1. 𝐷1 = 𝐷𝑜(1 + 𝑔)
𝐷1 = $ 3,600,000(1 + 0.1)
𝑫𝟏 = $ 3,600,000(1.1) = $ 𝟑,𝟎,𝟎𝟎𝟎𝟎

Dividends2010
2. 𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 = Net Income2010
$ 3,600,000
𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 =
$ 10,800,000

𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 = 0.3333 ≈ 33.33%

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2011 = 𝑃𝑎𝑦𝑜𝑢𝑡 𝑅𝑎𝑡𝑖𝑜2010 𝑥 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒2011

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2011 = 0.3333 𝑥 $ 14,400,000
𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔2011 = $ 4, 799,520 ≈ $ 𝟒,𝟎,𝟎𝟎0
 3. 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡2011 (1 − 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜)
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 8,400,000(1 − 0.4)
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 8,400,000(0.6)
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 5,040,000

𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒2011 − 𝐸𝑞𝑢𝑖𝑡𝑦

𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = $ 14,400,000 − $ 5,040,000
𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = $ 14,400,000 − $ 5,040,000
𝑫𝒊𝒔𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑷𝒂𝒊𝒅2011 = $ 𝟗, 𝟑𝟔𝟎,0

4. Regular dividends akan mengikuti tingkat pertumbuhan (g=10%)

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular = 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2010(1 + 𝑔)
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular = $ 3,600,000(1 + 0.1)
𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔regular = $ 3,600,000(1.1) = $ 𝟑,𝟎,𝟎𝟎𝟎𝟎

Dividen tambahan ditetapkan sesuai dengan kebijakan residual berdasarkan

perhitungan (3) sebesar $ 9,360,000, maka :
𝐸𝑥𝑡𝑟𝑎 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 = 𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 – 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular
𝐸𝑥𝑡𝑟𝑎 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 = $ 9,360,000 − $ 3,960,000 𝑬𝒙𝒕𝒓𝒂 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔 = $ 𝟓,𝟎,𝟎𝟎0

b. Kebijakan 4, berdasarkan dividen biasa dengan ekstra, tampaknya paling logis. Jika
diterapkan dengan benar, ini akan menghasilkan anggaran modal yang benar dan
pembiayaan yang benar dari anggaran itu serta akan memberikan preferensi yang benar
dan paling optimal kepada investor. Sehingga berdasarkan keempat perhitungan pada
bagian (a) maka kebijakan ini yang paling direkomendasikan.

c. Dividen tahun 2011 sebesar $ 9M dihitung berdasarkan model residual. Tapi kebijakan
model residual hanya terdiri tiga faktor fungsi didalamnya, yaitu : peluang investasi
perusahaan, struktur modal targetnya, ketersediaan dan biaya modal eksternal. Sedangkan
untuk mendapatkan rasio distribusi optimal diperlukan satu faktor lagi, yaitu preferensi
investor untuk dividen versus capital gain. Perusahaan menggunakan kebijakan residual
untuk membantu rasio distribusi target jangka panjang mereka, tetapi bukan sebagai
panduan untuk distribusi dalam satu tahun. Sehingga hanya berpatokan pada pembagian
dividen menggunakan kebijakan residual adalah tidak ideal. Kebijakan yang paling ideal
adalah dengan kebijakan regular-dividend-plus-extras yang memastikan bahwa dividen
reguler dapat dipertahankan dan bahwa pemegang saham dapat mengandalkan penerimaan
dividen itu dalam segala kondisi. Ini berarti perhitungan pembagian dividen yang masuk
akal dan ideal adalah dibawah $ 9M berdasarkan perhitungan pada bagian a (4), yaitu
sebesar $5,400,000.

CHAPTER 15.

15-5
Lee Manufacturing’s value of operations is equal to $900 million after a recapitalization (the firm
had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock.
Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm
had 30 million shares before the recap. What is P (the stock price after the recap)?
Diketahui:
Vop New = $ 900,000,000
DNew = $ 300,000
DOld = 0 (Perusahaan tidak mempunyai hutang sebelum rekapitalisasi) Perusahaan tidak
mempunyai hutang sebelum rekapitalisasi
Lee tidak mempunyai investasi jangka pendek sebelum dan sesudah rekapitalisasi
Wd = 1/3
NPrior = 30,000,000

Ditanya:
PPost?

Jawab:
(VOp New−DOld)
𝑃𝑃𝑜𝑠𝑡 = nPrior
($ 900,000,000 − 0)
𝑃𝑃𝑜𝑠𝑡 = 30,000,000
𝑷𝑷𝒐𝒔𝒕 = $ 𝟑𝟎
Maka harga saham setelah rekapitalisasi sebesar $ 30

15-9.
Pettit Printing Company has a total market value of $100 million, consisting of 1 million shares
selling for $50 per share and $50 million of 10% perpetual bonds now selling at par. The
company’s EBIT is $13.24 million, and its tax rate is 15%. Pettit can change its capital structure
either by increasing its debt to 70% (based on market values) or decreasing it to 30%. If it decides
to increase its use of leverage, it must call its old bonds and issue new ones with a 12% coupon. If
it decides to decrease its leverage, it will call its old bonds and replace them with new 8% coupon
bonds. The company will sell or repurchase stock at the new equilibrium price to complete the
capital structure change. The firm pays out all earnings as dividends; hence its stock is a zero-
growth stock. Its current cost of equity, rs, is 14%. If it increases leverage, rs will be 16%. If it
decreases leverage, rs will be 13%. What is the firm’s WACC and total corporate value under each
capital structure?

Diketahui:
Total Market Value = $ 100,000,000 (terdiri dari 1,000,000 saham dijual $ 50 per saham dan
50,000,000 dari 10% obligasi dijual pada nilai par)
EBIT = $ 13,240,000
Tax rate = 15%
Perusahaan dapat merubah struktur modal dengan :
i. Menaikkan struktur hutang menjadi 70% (berdasarkan market value)
ii. Menurunkan struktur hutang menjadi 30%
Bila diputuskan menaikkan leverage → obligasi lama dibatalkan dan akan dikeluarkan obligasi
baru dengan coupon 12% (rS = 16%)
Bila diputuskan menurunkan leverage → obligasi lama dibatalkan dan akan dikeluarkan obligasi
dengan coupon 8% (rS = 13%)
rS current = 14%
Ditanya:
WACC dan Total Corporate Value untuk tiap struktur modal?

Jawab:
a. Menghitung WACC
• Kondisi Sekarang
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 50 𝑥 1,000,000 = $ 50,000,000
Total Equity
𝑤s = Total Market Value
$ 50,000,000
ws = $ 100,000,000
ws = 0.5
𝐷𝑒𝑏𝑡 = $ 50,000,000
Total Debt
𝑤d = Total Market Value
$ 50,000,000
wd = $ 100,000,000
wd = 0.5
𝑊𝐴𝐶𝐶current = 𝑤d (1 − 𝑇)d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶current = 0.5(1 − 0.15)0.1 + 0.5(0.14)
𝑊𝐴𝐶𝐶current = 0.0425 + 0.07
𝑾𝑨𝑪𝑪current = 0.1125 ≈ 𝟏𝟏.𝟐𝟓%

• Kondisi bila perusahaan menaikkan leverage (ws = 70%)

𝑊𝐴𝐶𝐶debt increasing = 𝑤d (1 − 𝑇)d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶debt increasing = 0.7(1 − 0.15)0.12 + 0.3(0.16)
𝑊𝐴𝐶𝐶debt increasing = 0.0714 + 0.048
𝑾𝑨𝑪𝑪debt increasing = 0.1194 ≈ 𝟏𝟏.𝟗𝟒%

• Kondisi bila perusahaan menurunkan leverage (wd = 30%)

𝑊𝐴𝐶𝐶debt decreasing = 𝑤d (1 − 𝑇)d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶debt decreasing = 0.3(1 − 0.15)0.08 + 0.7(0.13)
𝑊𝐴𝐶𝐶debt decreasing = 0.0204 + 0.091
𝑊𝐴𝐶𝐶debt decreasing = 0.1114 ≈ 𝟏𝟏.𝟏𝟒%

b. Menghitung Nilai Total Corporate Value untuk tiap struktur Modal :

• Kondisi Sekarang (debt = 50%)
FCF
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 = WACCcurrent
EBIT (1 − T)
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 = WACCcurrent
$ 13,240,000 (1 − 0.15)
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 =
0.1125
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒄𝒖𝒓𝒓𝒆𝒏𝒕 = = $ 𝟏𝟎𝟎,𝟎𝟑𝟓,𝟓𝟓𝟔
𝟎.𝟏𝟏𝟐𝟓

• Kondisi debt = 70%

FCF
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 =
WACCdebt increasing
EBIT (1 − T)
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 =
WACCdebt increasing
 $ 13,240,000 (1 − 0.15)
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = 0.1194
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒅𝒆𝒃𝒕 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒊𝒏𝒈 = = $ 𝟗𝟒, 𝟐𝟓𝟒,𝟔𝟎𝟔
0.1194

• Kondisi debt = 30%

FCF
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = WACCdebt decreasing
EBIT (1 − T)
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = WACCdebt decreasing
$ 13,240,000 (1 − 0.15)
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = 0.1114
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒅𝒆𝒃𝒕 𝒅𝒆𝒄𝒓𝒆𝒂𝒔𝒊𝒏𝒈 = = $ 𝟏𝟎𝟏,𝟑,𝟑𝟑9
0.1114
 Financial Management Assigment Week 7
Problem Chapter 16: 16-8, 16-13, 16-16 Chapter 19: 19-2,19-4, 19-6.

CHAPTER 16:

16-8
a. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th day and still takes
the discount, what is the nominal cost of its nonfree trade credit?
b. Does it receive more or less credit than it would if it paid within 15 days?
Jawab:
3 365
a. 97 × = 45.15%
45−20
Karena perusahaan masih mengambil diskon pada hari ke 20, maka periode diskon
digunakan sebagai periode diskon dalam menghitung biaya kredit perdagangan non-bebas.
b. Membayar setelah periode diskon, tetapi tetap mengambil diskon memberi perusahaan
lebih banyak kredit daripada yang akan diterimanya jika dibayar dalam 15 hari.
16-13
The Rentz Corporation is attempting to determine the optimal level of current as-sets for the
coming year. Management expects sales to increase to approximately $2 million as a result of an
asset expansion presently being undertaken. Fixed assets total $1 million, and the firm wishes to
maintain a 60% debt ratio. Rentz’s interest cost is currently 8% on both short-term and longer-
term debt (both of which the firm uses in its permanent capital structure). Three alternatives
regarding the projected current asset level are available to the firm: (1) a tight policy requiring
current assets of only 45% of projected sales, (2) a moderate policy of 50% of sales in current
assets, and (3) a relaxed policy requiring current assets of 60% of sales.
The firm expects to generate earnings before interest and taxes at a rate of 12% on total sales.
a. What is the expected return on equity under each current asset level? (Assume a 40%
effective federal-plus-state tax rate.)
b. In this problem, we have assumed that the level of expected sales is independent of current
asset policy. Is this a valid assumption?
c. How would the overall riskiness of the firm vary under each policy?
Jawab:
a. Return on equity may be computed as follows:

Tight Moderate Relaxed

Current assets
(% of sales x Sales) 900.000 1.000.000 1.200.000
Fixed assets 1.000.000 1.000.000 1.000.000
Total assets 1.900.000 2.000.000 2.200.000

Debt (60% of assets) 1.140.000 1.200.000 1.320.000

Equity 760.000 800.000 880.000
Total liability and equity 1.900.000 2.000.000 2.200.000
 EBIT (12% x $2 million) 240.000 240.000 240.000
Interest (8%) 91.200 96.000 105.600
Earnings before taxes 148.800 144.000 134.400
Taxes (40%) 59.520 57.600 53.760
Net income 89.280 86.400 80.640
Return on equity 11,75% 10,80% 9,16%
b. Tidak, asumsi ini mungkin tidak valid dalam situasi dunia nyata. Kebijakan aset lancar
perusahaan, terutama yang berkaitan dengan piutang, seperti diskon, periode penagihan,
dan kebijakan penagihan, mungkin memiliki pengaruh signifikan terhadap penjualan.
Namun, sifat sebenarnya dari fungsi ini mungkin sulit untuk diukur, dan menentukan
tingkat aset lancar yang "optimal" mungkin tidak dapat dilakukan dalam kenyataannya.
c. Seperti yang ditunjukkan oleh jawaban untuk Bagian a, kebijakan yang lebih ketat
mengarah pada hasil yang diharapkan lebih tinggi. Namun, seiring dengan penurunan
tingkat aset saat ini, kemungkinan sebagian penurunan ini berasal dari piutang. Ini dapat
dicapai hanya melalui diskon yang lebih tinggi, periode pengumpulan yang lebih singkat,
dan / atau kebijakan penagihan yang lebih ketat. Seperti diuraikan di atas, hal ini pada
gilirannya akan berdampak pada penjualan, kemungkinan menurunkan laba. Kebijakan
piutang yang lebih ketat mungkin melibatkan beberapa biaya tambahan (penagihan, dan
sebagainya) tetapi juga mungkin akan mengurangi biaya piutang tak tertagih. Aset lancar
yang lebih rendah juga berarti aset likuid yang lebih rendah; dengan demikian, kemampuan
perusahaan untuk menangani kontinjensi akan terganggu. Risiko yang lebih tinggi dari
likuiditas yang tidak memadai akan meningkatkan risiko kebangkrutan perusahaan dan
dengan demikian meningkatkan peluangnya untuk gagal memenuhi biaya tetap. Selain itu,
persediaan yang lebih rendah mungkin berarti kehilangan penjualan dan / atau penghentian
produksi yang mahal. Mencoba melampirkan nilai numerik ke potensi kerugian dan
probabilitas ini sangat sulit.

16-16
The Thompson Corporation projects an increase in sales from $1.5 million to $2 million, but it
needs an additional $300.000 of current assets to support this expansion. Thompson can finance
the expansion by no longer taking discounts, thus increasing account payable. Thompson
purchases under terms of 2/10, net 30, but it can delay payment for an additional 35 days-paying
in 65 days and thus becoming 35 days past due-without a penalty because its supplier currently
have excess capacity. What is the effective, or equivalent, annual cost of the trade credit?
Jawab:
Ketentuan: 2/10, bersih 30. Tetapi perusahaan berencana menunda pembayaran 35 hari
tambahan, yang setara dengan 2/10, bersih 65.
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑒𝑟𝑐𝑒𝑛𝑡 365
Normal cost = 100−𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑒𝑟𝑐𝑒𝑛𝑡 × 𝐷𝑎𝑦𝑠 𝑐𝑟𝑒𝑑𝑖𝑡 𝑖𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔−𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑒𝑟𝑖𝑜𝑑
2 365
Normal cost = 100−2 × 65−10
2 365
Normal cost = ×
98 55
Normal cost = 0.0204 𝑥 6.6364
Normal cost = 13.54%
Effective cost = (1 + 2/98)365/55 – 1 = 14.35%

CHAPTER 19:

19-2
Peterson Securities recently issued convertible bonds with a $1.000 par value. The bonds have a
conversion price of $40 a share. What is the convertible issue’s conversion ratio?
Jawab:
Convertible Bond’s Par value = $1,000; Conversion price, Pc = $40;
𝑃𝑎𝑟 𝑣𝑎𝑙𝑢𝑒
CR = 𝑃𝑐
$1,000
CR =
$40
CR = 25 shares

19-4
The Tsetsekos Company was planning to finance an expansion. The principal Executive of the
company all agreed that an industrial company such as theirs should finance growth by means of
common stock rather than by debt. However, they felt that the current $42 per share price of the
company’s common stock did not reflect its true worth, so they decided to sell a convertible
security. They considered a convertible debenture but feared the burden of fixed interest charges
if the common stock did not rise enough in price to make conversion attractive. They decided on
an issue of convertible preferred stock, which would pay a dividend of $2.10 per share.
a. The conversion ratio will be 1.0; that is, each share of convertible preferred can be
converted into a single share of common. Therefore, the convertible’s par value (and also
the issue price) will be equal to the conversion price, which in turn will be determined as
a premium (i.e., the percentage by which the conversion price exceeds the stock price)
over the current market price of the common stock. What will the conversion price be if it
is set at a 10% premium? At a 30% premium?
b. Should the preferred stock include a call provision? Why?
Jawab:
a. Premi 10 persen menghasilkan harga konversi $ 42 (1,10) = $ 46,20, sedangkan premium
30 persen menghasilkan harga konversi $ 42 (1,30) = $ 54,60. Bankir investasi sering
menggunakan aturan praktis bahwa premi di atas harga sekarang harus berkisar antara 10
hingga 30 persen. Jika tingkat pertumbuhan perusahaan rendah, premi akan mendekati 10
persen, sementara perusahaan dengan tingkat pertumbuhan tinggi akan meminta premi
mendekati 30 persen.
b. Ya, untuk dapat memaksa konversi jika pasar naik di atas call price.

19-6
The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its
commercial bank urged the company to consider increasing its permanent financing. Its bank
loan under a line of credit has risen to $250,000, carrying an 85% interest rate. Howland has
been 30 to 60 days late in paying trade creditors.
Discussions with an investment banker have resulted in the decision to raise $500,000 at this
time. Investment bankers have assured the firm that the following alternative are feasible
(flotation cost will be ignored).
• Alternative 1: Sell common stock at $8.
• Alternative 2: Sell convertible bonds at an 8% coupon, convertible into 100 shares of
common stock for each $1,000 bond (i.e., the conversion price is $10 per share).
• Alternative 3: Sell debentures at an 8% coupon, each $1,000 bond carrying 100 warrants
to buy common stock at $10.
John L. Howland, the president, own 80% of the common stock and wishes to maintain control
of the company. They are 100,000 shares outstanding. The following are extracts of Howland’s
latest financial statement:
Balance Sheet
Current liabilities 400.000
Common stock, par
$1 100.000
Retained earnings 50.000
Total assets 550.000 Total claims 550.000

Income Statement
Sales 1.100.000
All costs expect
interest 990.000
EBIT 110.000
Interest 20.000
EBT 90.000
Taxes (40%) 36.000
Net income 54.000
Shares outstanding 100.000
Earnings per share 0,54
Price/earnings ratio 15,83
Market price of stock 8,55
a. Show the new balance sheet under each alternative. For Alternatives 2 and 3, show the
balance sheet after conversion of the bonds or exercise of the warrants. Assume that half
of the funds raised will be used to pay off the bank loan and half to increase total assets.
b. Show Mr. Howland’s control position under each alternative, assuming that he does not
purchase additional shares.
c. What is the effect on earnings per share of each alternative, assuming that profits before
interest and taxes will be 20% of total assets?
d. What will be the debt ratio (TL/TA) under each alternative?
e. Which of the three alternatives would you recommend to Howland, and why?
Jawab:
a.
Balance Sheet
 Alternative 1
Total current
liabilities 150.000
Long-term debt -
Common stock, par
$1 162.500
Paid-in capital 437.500
Retained earnings 50.000
Total
assets 800.000 Total claims 800000

Alternative 2
Total current
liabilities 150.000
Long-term debt -
Common stock, par
$1 150.000
Paid-in capital 450.000
Retained earnings 50.000
Total
assets 800.000 Total claims 800.000

Alternative 3
Total current
liabilities 150.000
Long-term debt 500.000
Common stock, par
$1 150.000
Paid-in capital 450.000
Retained earnings 50.000
Total
assets 1.300.000 Total claims 1.300.000
b.

Original Plan 1 Plan 2 Plan 3

Number of
shares 80.000 80.000 80.000 80.000
Total shares 100.000 162.500 150.000 150.000
Percent
ownership 80% 49% 53% 53%
c.

Original Plan 1 Plan 2 Plan 3

Total assets 550.000 800.000 800.000 1.300.000
EBIT 110.000 160.000 160.000 260.000
 Interest 20.000 0 0 40.000
EBT 90.000 160.000 160.000 220.000
Taxes (40%) 36.000 64.000 64.000 88.000
Net income 54.000 96.000 96.000 132.000
Number of
shares 100.000 162.500 150.000 150.000
Earnings per
share 0,54 0,59 0,64 0,88
d.

Original Plan 1 Plan 2 Plan 3

Total liabilities 400.000 150.000 150.000 650.000
TL/TA 73% 19% 19% 50%
e. Alternatif 1 mengakibatkan hilangnya kendali (menjadi 49 persen) bagi perusahaan. Di
bawahnya, dia kehilangan mayoritas saham yang beredar. Laba per saham yang
ditunjukkan meningkat, dan rasio utang berkurang secara signifikan (sebesar 54 poin
persentase).
Alternatif 2 menghasilkan pengendalian (53 persen) bagi perusahaan. Laba per saham
meningkat, sedangkan penurunan rasio utang seperti yang terjadi di Alternatif 1.
Di bawah Alternatif 3 ada juga pemeliharaan kendali (53 persen) untuk perusahaan.
Rencana ini menghasilkan laba per saham tertinggi (88 sen), yang merupakan peningkatan
63 persen dari laba per saham asli. Rasio utang dikurangi menjadi 50 persen.
Kesimpulan. Jika asumsi masalah dibenarkan, Alternatif 1 lebih rendah dari 2, karena
hilangnya kendali dapat dihindari. Rasio hutang terhadap ekuitas (setelah konversi) sama
dalam kedua kasus. Dengan demikian, analisis harus berpusat pada pilihan antara 2 dan 3.
Perbedaan antara kedua alternatif ini, yang diilustrasikan dalam Bagian c dan d, adalah
bahwa peningkatan laba per saham secara substansial lebih besar di bawah Alternatif 3,
begitu pula rasio utang. Dengan rasio hutangnya yang rendah (19 persen), perusahaan
berada dalam posisi yang baik untuk pertumbuhan di masa depan di bawah Alternatif 2.
Namun, rasio 50 persen di bawah 3 tidak menghalangi dan merupakan perbaikan besar dari
situasi aslinya. Kombinasi dari peningkatan laba per saham dan pengurangan hutang rasio
menunjukkan pergerakan harga saham yang menguntungkan dalam kedua kasus, terutama
di bawah Alternatif 3. Ada kemungkinan kecil bahwa perusahaan bisa kehilangan
pembiayaan bank komersial di bawah 3, karena bank yang memulai saran pembiayaan
permanen. Dana tambahan, terutama di bawah 3, memungkinkan perusahaan menjadi lebih
lancar dalam kredit perdagangannya. Juga, obligasi tidak diragukan lagi akan menjadi surat
hutang subordinasi.
Baik Alternatif 2 dan 3 adalah alternatif yang disukai. Jika pemilik utama bersedia
menanggung risiko leverage yang lebih tinggi, maka 3 sedikit lebih menarik daripada 2.
Daya tarik sebenarnya dari Alternatif 3 bergantung, tentu saja, pada asumsi bahwa dana
dapat diinvestasikan untuk menghasilkan 20 persen sebelum bunga dan pajak. Fakta inilah
yang membuat leverage tambahan menguntungkan dan meningkatkan laba per saham.
 Financial Management Assigment Week 10
Problems Chapter: 21-4, 21-5, 21-6; 22-3, 22-4

CHAPTER 21.

P 21-4
Diketahui:
FCF0 = $ 2M
FCF1 = $ 2.5M
FCF2 = $ 2.9M
FCF3 = $ 3.4M
FCF4 = $ 3.57M
g = 5%
b = 1.4
rRF = 5%
RPM = 6%
rd = 8%
wd = 30%
Interest1 = Interest2 = Interest3 = $ 1.5M
Interest pada tahun ke-4 = $ 1.472M
Debt = $ 10.82 M
Debt levelnew = $ 30.6M
wdnew = 45%
Interest rate on debtnew= 8.5%
Tax rate = 40%

Ditanya :
a. Vunlevered?
b. VTax Shiels?
c. Value of equity?

Jawab :
a. Menghitung Vunleverd:
• 𝑟sL = 𝑟RF + (𝑅𝑃M)𝑏
𝑟sL = 5% + (6%)1.4
𝑟sL = 5% + 8.4% = 13.4%

• 𝑟sU = wd r𝑑 + 𝑤s 𝑟sL
𝑟sU = 0.3(0.08) + 0.7(0.134)
𝑟sU = 0.024 + 0.0938
𝑟sU = 0.1178 ≈ 11.78%

𝐹𝐶𝐹4 (1+𝑔)
• HVUL4 =
𝑟𝑠𝑢−𝑔
$ 3.57𝑀 (1+0.05)
HVUL4 = 0.1178−0.05
$ 3.7485
HVUL4 = 0.0678
 HVUL4 = $ 55.29 M
𝐹𝐶𝐹𝑡 𝐻𝑉𝑢𝐿4
• VUnlevered = ∑4𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)4
$ 2.5 𝑀 $ 2.9 𝑀 $ 3.4 𝑀 $ 3.57+$ 55.29 𝑀
VUnlevered = + + +
(1+0.1178) (1+0.1178)2 (1+0.1178)3 (1+0.1178)4
VUnlevered = $ 2.24 M + $ 2.32 M + $ 2.43 M + $ 37.7 M
VUnlevered = $ 𝟒𝟒. 𝟔𝟗 𝑴

b. Menghitung VTax Shield:

• 𝑇𝑆1 = 𝑇𝑆2 = 𝑇𝑆3 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑥 𝑇𝑎𝑥 𝑅𝑎𝑡𝑒 = $ 1.5M (0.4) = $ 0.6M

• 𝑇𝑆4 = (𝐷𝑒𝑏𝑡 𝑙𝑒𝑣𝑒𝑙new)(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑑𝑒𝑏𝑡new)(𝑇𝑎𝑥 𝑟𝑎𝑡𝑒)

𝑇𝑆4 = ($ 30.6𝑀) (0.085) (0.4)
𝑇𝑆4 = $ 1.04 M
𝑇𝑆𝑡 𝐻𝑉𝑇𝑆4
• VTax Shield = ∑4𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)4

$ 0.6𝑀 $ 0.6𝑀 $ 0.6𝑀 $ 1.04 𝑀+$ 16.11 𝑀

VTax Shield = + (1+0.1178)2 + (1+0.1178)3 +
(1+0.1178) (1+0.1178)4
VTax Shield = $ 0.54 M + $ 0.48 M + $ 0.43 M + $ 10.98 M
VTax Shield = $ 12.43 M

c. Menghitung Value of Equity:

• 𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 = 𝑉𝑢𝑛𝑙𝑒𝑣𝑒𝑟𝑒𝑑 + 𝑉𝑇𝑎𝑥 𝑆ℎ𝑖𝑒𝑙𝑑
𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 = $ 44.69𝑀 + $ 12.43𝑀
𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 = $ 57.12𝑀

• 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 − 𝐷𝑒𝑏𝑡

𝑉𝑎𝑙𝑢𝑒 𝑜f 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 57.12𝑀 − $ 10.8𝑀
Value of Equity = $ 𝟒𝟔. 𝟑𝟐 M

P 21-5

Diketahui:
rRF = 6%
RPM = 4.5%
b = 1.3
wd = 25%
rd = 9%
Tax ratepre merger = 20%
Tax ratepost merger = 35%
g = 6%
Debt = $ 10M

Ditanya:
a. Tentukan Vunlevered dan VTax Shield post merger?
b. Voperations? Bila debt = $ 10 M, tentukan Value of equity?

Jawab:
a. Menghitung Vunlevered post merger :
• 𝑟𝑠𝐿 = 𝑟𝑅𝐹 + (𝑅𝑃𝑀)𝑏
𝑟𝑠𝐿 = 6% + (4.5%)1.3
𝑟𝑠𝐿 = 6% + 5.85% = 11.85%

• 𝑟𝑠𝑈 = 𝑤𝑑𝑟𝑑 + 𝑤𝑠𝑟𝑠𝐿

𝑟𝑠𝑈 = (0.25)(0.09) + (0.75)(0.1185)
𝑟𝑠𝑈 = 0.0225 + 0.0889 = 0.11114 ≈ 11.14%

𝐹𝐶𝐹5 (1+𝑔)
• HVUL5 = 𝑟𝑠𝑢−𝑔
$ 2.12𝑀 (1+0.06)
HVUL5 = 0.1114−0.06
$ 2.247 𝑀
HVUL5 = 0.0514
HVUL5 = $ 43.72 M
𝐹𝐶𝐹𝑡 𝐻𝑉𝑢𝐿5
• VUnlevered = ∑5𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)5
$ 1.3 𝑀 $ 1.5 𝑀 $ 1.75 𝑀 $2𝑀 $ 2.12 𝑀+$ 43.72 𝑀
VUnlevered = + (1+0.1114)2 + (1+0.1114)3 + (1+0.1114)4 +
(1+0.1114) (1+0.1114)5
VUnlevered = $ 1.17 M + $ 1.214 M + $ 1.275 M + $ 1.311 M + $ 27.033 M
VUnlevered = $ 𝟑𝟐 𝑴

Menghitung VTax Shield post merger:

• 𝑇𝑆1 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡1𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = $ 1.2𝑀 𝑥 0.35 = $0.42𝑀
𝑇𝑆2 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = $ 1.7𝑀 𝑥 0.35 = $0.595𝑀
𝑇𝑆3 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡3𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = $ 2.8𝑀 𝑥 0.35 = $0.98𝑀
𝑇𝑆4 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡4𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = $ 2.1𝑀 𝑥 0.35 = $0.735𝑀
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡5 = 𝐷𝑒𝑏𝑡4𝑥 0.95 = $22.27𝑀 𝑥 0.095 = $ 2.116𝑀
𝑇𝑆5 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡5𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = $ 2.116𝑀 𝑥 0.35 = $0.741 M

𝑇𝑆5 (1+𝑔)
• HVTS5 = 𝑟𝑠𝑢−𝑔
 $ 0.741𝑀 (1+0.06)
HVTS5 = 0.1114−0.06
$ 0.785 𝑀
HVTS5 = 0.0514
HVTS5 = $ 15.27 M
𝑇𝑆𝑡 𝐻𝑉𝑇𝑆5
• VTax Shield = ∑5𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)5
$ 0.42 𝑀 $ 0.595 𝑀 $ 0.98 𝑀 $ 0.735 𝑀 $ 0.741 𝑀+$ 15.27 𝑀
VTax Shield = + (1+0.1114)2 + (1+0.1114)3 + (1+0.1114)4 +
(1+0.1114) (1+0.1114)5
VTax Shield = $ 0.37 M + $ 0.48 M + $ 0.71 M + $ 0.48 M + $ 9.44 M
VTax Shield = $ 𝟏𝟏. 𝟓 𝑴

b. Menghitung Voperations :
• 𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 = 𝑉𝑢𝑛𝑙𝑒𝑣𝑒𝑟𝑒𝑑 + 𝑉𝑇𝑎𝑥 𝑆ℎ𝑖𝑒𝑙𝑑
𝑉𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 = $ 32𝑀 + $ 11.5𝑀
𝑽𝒐𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔 = $ 𝟒𝟑. 𝟓 M

P 21-6
Diketahui:

Pre merger condition:

wd = 40%
rd = 10%
tax rate (2010-2014) = 20%
Post merger condition:
wd = 50%
tax rate = 35%

Ditanya:
a. Tentukan rsU?
b. Tentukan TS1, TS2, TS3, TS4, TS5? Dan tentukan FCF1, FCF2, FCF3, FCF4, FCF5?
c. Tentukan HVTS? Tentukan HVUL?
d. Value of Equity?
Jawab:
a. Menghitung rsU :
• 𝑟𝑠𝐿 = 𝑟𝑅𝐹 + (𝑅𝑃𝑀)𝑏
𝑟𝑠𝐿 = 6% + (4%)(1.4)
𝑟𝑠𝐿 = 6% + 5.6% = 11.6%

• 𝑟𝑠𝑈 = 𝑤𝑑𝑟𝑑 + 𝑤𝑠𝑟𝑠𝐿

𝑟𝑠𝑈 = (0.4)(0.1) + (0.6)(0.116)
𝒓𝒔𝑼 = 0.04 + 0.0696 = 0.1096 ≈ 𝟏𝟎. 𝟗𝟔%

b. Menghitung TS2011 – TS2015 dan FCF2011 – FCF2015:

Post-Merger Data for BBC (in Thousand Dollars)
2010 2011 2012 2013 2014
Net sales $450.00 $518.00 $555.00 $600.00
Cost of Goods Sold $292.50 $336.70 $360.75 $390.00
Selling and adm $45.00 $53.00 $60.00 $68.00
expense
EBIT $112.50 $128.30 $134.25 $142.00
Taxes on EBIT (35%) $39.38 $44.90 $46.99 $49.70
NOPAT $73.12 $83.40 $87.26 $92.30
Total Operating Cap. $800 $850.00 $930.00 $1,005 $1,075
Invest. In Op. Capital $50.00 $80.00 $75.00 $70.00
FCF $23.12 $3.40 $12.26 $22.30
• 𝑇𝑆𝑁 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡𝑁 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟
𝑇𝑆1 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2011 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟
𝑇𝑆1 = $ 40,000 𝑥 0.35 = $ 14,000

𝑇𝑆2 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2012 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟

𝑻𝑺𝟐 = $ 45,000 𝑥 0.35 = $ 𝟏𝟓, 𝟕𝟓𝟎

𝑇𝑆3 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2013 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟

𝑻𝑺𝟑 = $ 47,000 𝑥 0.35 = $ 𝟏𝟔, 𝟒𝟓𝟎

𝑇𝑆4 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2014 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟

𝑻𝑺𝟒 = $ 52,000 𝑥 0.35 = $ 𝟏𝟖, 𝟐𝟎𝟎

𝑇𝑆5 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡2015 𝑥 𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 𝑝𝑜𝑠𝑡 𝑚𝑒𝑟𝑔𝑒𝑟

𝑻𝑺𝟓 = $ 54,000 𝑥 0.35 = $ 𝟏𝟖, 𝟗𝟎𝟎
c. Menghitung HVTS dan HVUL:
𝐹𝐶𝐹2015 (1+𝑔)
• HVUL5 = 𝑟𝑠𝑢−𝑔
$ 23,830𝑀 (1+0.07)
HVUL5 = 0.1096−0.07
$ 25,498.1𝑀
HVUL5 = 0.0396
HVUL5 = $ 643,891M

𝑇𝑆5 (1+𝑔)
• HVTS5 = 𝑟𝑠𝑢−𝑔
$ 18.900𝑀 (1+0.07)
HVTS5 = 0.1096−0.07
$ 20,223 𝑀
HVTS5 = 0.0396
HVTS5 = $ 510,682 M

d. Menghitung Value of Equity :

Data is in Thousand Dollars
2011 2012 2013 2014 2015
FCF $23.13 $3.40 $12.26 $22.30 $23.83
HV Unlevered $643.89
FCF plus HV $23.13 $3.40 $12.26 $22.30 $667.72
Unlevered

Interest Tax Saving $14.00 $15.75 $16.45 $18.20 $18.90

HV Tax Shield $510.68
TS plus HV tax shield $14.00 $15.75 $16.45 $18.20 $529.58

• Menghitung VUnlevered:
𝐹𝐶𝐹𝑡 𝐻𝑉𝑢𝐿5
VUnlevered = ∑5𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)5
$ 23,130 𝑀 $ 15,750 𝑀 $ 16,450 𝑀 $ 18,200 𝑀 $ 529.580 𝑀
VUnlevered = + + + +
(1.1096) (1.1096)2 (1.1096)3 (1.1096)4 (1.1096)5
VUnlevered = $ 20,845 M + $ 2,761 M + $ 8,974 M + $ 14,711 M + $ 396,974 M
VUnlevered = $ 𝟒𝟒𝟒, 𝟐𝟔𝟓 𝑴

• Menghitung VTax Shield:

𝑇𝑆𝑡 𝐻𝑉𝑇𝑆5
VTax Shield = ∑5𝑡=1 (1+𝑟𝑠𝑢)𝑡 + (1+𝑟𝑠𝑢)5
$ 14,000 𝑀 $ 15,750 𝑀 $ 16,450 𝑀 $ 18,200 𝑀 $ 529.580 𝑀
VTax Shield = + + + +
(1.1096) (1.1096)2 (1.1096)3 (1.1096)4 (1.1096)5
VTax Shield = $ 12,617 M + $ 12,792 M + $ 12,041 M + $ 12,006 M + $ 314,847 M
VTax Shield = $ 𝟑𝟔𝟒, 𝟑𝟎𝟑 𝑴
 • Menghitung Voperations:
Voperations = Vunlevered + VTax Shield
Voperations = $ 444,265 + $ 364,303 = $ 808,565 M

• Menghitung Value of Equity:

𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝑉𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 − 𝐷𝑒𝑏𝑡
𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 808,565 − $ 300,000
𝑽𝒂𝒍𝒖𝒆 𝒐𝒇 𝑬𝒒𝒖𝒊𝒕𝒚 = $ 𝟓𝟎𝟖, 𝟓𝟔 M

CHAPTER 22.

P 22-3
Diketahui: Data McDaniel (in thousand dollars)

Sales of fixed assets = $ 400

Sales of current assets = $ 200
Total proceeds from liquidation sales = $ 600
Trustee’s cost = $ 50
Tidak ada pension plan liabilities yang tidak didanai

Ditanya:
a. Berapa banyak yang diterima oleh pemegang sahal McDaniels dari likuidasi?
b. Berapa banyak yang diterima mortgage bondholder?
c. Siapakah penggugat prioritas lainnya (selain pemegang hipotek)? Berapa banyak yang
akan mereka terima dari likuidasi?
d. Siapakah kreditor umum yang tersisa? Berapa banyak yang akan diterima masingmasing
dari distribusi sebelum penyesuaian subordinasi? Apa efek dari penyesuaian subordinasi?

Jawab:
a. Perhitungan:
 Claim for Creditors
Current liabilities $300,000
First mortgage bonds $300,000
Second mortgage bonds $200,000
Debenture $200,000
Second debentures $100,000
Total $1,100,000

Proceeds from liquidation

Sales $600,000
Trustee’s cost ($50,000)
Cash to be distributed $550,000
Kreditur mengklaim total $ 1,100,000 sementara trustee memiliki tambahan $ 50,000
dalam klaim, namun likuidasi hanya menghasilkan $ 600,000. Karena hasil tidak
cukup untuk memenuhi klaim kreditur dan trustee, maka pemegang saham tidak
menerima apa pun ($ 0). Hasil proses likuidasi didistribusikan berdasarkan prioritas
dan pemegang saham biasa akan dibayar terakhir jika ada nilai yang tersisa.

b. Perhitungan:
Semua fixed assets digunakan sebagai jaminan atas mortgage bonds.
Fixed assets sale $400,000
Less: First Mortgage bond $300,000
Remaining for Second Mortgage $100,000

First Mortgage bond memiliki prioritas dan menerima $300 penuh dari penjualan fixed
assets senilai $ 400.
Sisa $ 100 masuk ke Second Mortgage.
Second Mortgage $200,000
$100,000
Remaining on Second Mortgage $100,000
General Claimant on remaining $100 $12,700
 First mortgage receives $300,000
Second mortgage receives $100,000
Plus general claimant on remaining debt $12,700
Dari perhitungan, make first mortgage menerima $ 300,000. Lalu second mortgage
menerima $ 100,000 ditambah dengan $ 12,700 sebagai general claimaint.

c. Penggugat (claimant) prioritas lainnya adalah pemegang obligasi hipotek (mortage

bondholders), wali amanat (trustee), pekerja, dan pemerintah. Penggugat lainnya
yang tersisa adalah kreditor umum. Ada $ 200,000 yang tersedia setelah $ 400,000
didistribusikan kepada mortgage bondholders. Ini didistribusikan ke penggugat
prioritas yang tersisa sebagai berikut:

Current assets sale

Trustee expense $50,000 Priority
Workers’ wages $30,000 Priority
Taxes $40,000 Priority
Total Priority Distribution $80,000

d. Dari total $ 600,000 yang diterima dari likuidasi, $ 520,000 (yang dibayarkan kepada
pemegang first mortgage, second mortgage dan claimant) telah didistribusikan
kepada penggugat (claimant) prioritas. Ini menyisakan $ 80,000 untuk
didistribusikan kepada kreditor umum. Tetapi kreditor umum mengklaim total $
630,000:

Creditors claims
Accounts payable $50,000
Notes payable $180,000
Second mortgage $100,000
Debentures $200,000
Subordinate debentures $100,000
Total $630,000

Perhatikan bahwa klaim tidak puas pemegang second mortgage sebesar $ 100,000
disertakan. Setiap penggugat, sebelum penyesuaian subordinasi, akan menerima $
 80,000/$ 630,000= 0,1270 (12.7%) dari klaimnya. Oleh karena itu, kreditor umum
akan menerima:

Before subordination
Accounts payable $6,350
Notes payable $22,860
Second mortgage $12,700 (Plus $100,000 dari sisa first mortgage bond)
Debentures $25,400
Subordinated debentures $12,700 (Total keseluruhan $180,000)
Total $80,000

After subordination
Subordinate debenture holders must relinquish all claims unitl the note payable hoders are
fully paid

Notes payable $157,140.00 shortage

Notes payable $35,560
Subordintated debentures $0

Terakhir, setelah penyesuaian subordinasi dilakukan, prioritas pemegang

subordinated debentures berada di bawah pemegang notes payable. Oleh karena itu,
pemegang subordinated debentures harus melepaskan semua klaim sampai
pemegang notes payable dibayar sepenuhnya. Karena notes payable sebesar $
180,000 - $ 22,860 = $ 157,140 kurang terpenuhi sepenuhnya, maka $ 12,700 yang
awalnya dialokasikan kepada pemegang subordinate debentures harus dilepaskan
kepada pemegang notes payable sebesar $ 22,860 + $ 12,700 = $ 35,560 dan tidak ada
(dari bagian kreditur umum) bagian yang diterima oleh pemegang subordinated
debentures ($ 0).

P 22-4
Diketahui:
Berikut Balance sheet mewakili posisi Boles Electronics Corporation pada saat mengajukan pailit
(dalam ribuan dolar):
Mortgage bonds dijamin oleh plant (tapi tidak dijamin oleh equipment)
Subordinated debentures disubordinasikan ke notes payable
Perusahaan tidak dapat di reorganisasi dibawah Chapter 11, jadi dilikuidasi di bawah
Chapter 7
Trustee’s Legal and administrative fees = $ 200,000
Trustee menjual aset dan menerima hasil sebagai berikut (dalam ribuan dolar):

Cash yang tersedia untuk didistribusikan = $ 10,000

Tidak ada wage earner yang memiliki klaim lebih dari $ 2,000
Tidak ada pension plan liabilitites yang tidak didanai

Ditanya:
a. Berapa jumlah total yang tersedia untuk didistribusikan ke semua claimants? Berapa total
klaim kreditur dan trustee? Akankah pemegang saham preferen dan biasa menerima
distribusi?
b. Tentukan distribusi dolar kepada setiap kreditur dan trustee? Berapa persentase dari setiap
klaim yang dipenuhi?

Jawab:
a. Jumlah total yang tersedia untuk didistribusikan kepada semua claimant:
Total Proceeds $3,190,000
Cash $10,000
Total amount for $3,200,000
distribution

Total klaim kreditur dan trustee:

Total Claims $10,000,000
 Total amount for distribution $3,200,000
Trustee's Legal and Administrative $200,000
fees
Total creditor and trustee claims $7,000,000

Karena jumlah total klaim jauh lebih tinggi daripada total dana yang tersedia untuk
didistribusikan maka pemegang saham biasa dan preferen tidak menerima apa pun
($ 0).

b. Distribusi dolar kepada setiap kreditur dan trustee serta persentase dari setiap klaim
yang dipenuhi:

Funds for priority $2,000,000

Funds remaining after Priority Distribution $1,200,000
General creditor claims total $5,000,000

% to each claimant before subordination adjustment 24%

• Dana tersisa setelah priority distribution:

𝐹𝑢𝑛𝑑𝑠 𝑟𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑎𝑓𝑡𝑒𝑟 𝑝𝑟𝑖𝑜𝑟𝑖𝑡𝑦 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 = 𝑇𝑜𝑡𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑓𝑜𝑟 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 − 𝑝𝑟𝑖𝑜𝑟𝑖𝑡𝑦 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑭𝒖𝒏𝒅𝒔 𝒓𝒆𝒎𝒂𝒊𝒏𝒊𝒏𝒈 𝒂𝒇𝒕𝒆𝒓 𝒑𝒓𝒊𝒐𝒓𝒊𝒕𝒚 𝒅𝒊𝒔𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 = $ 3,200,000 − $ 2,000,000 = $ 𝟏, 𝟐𝟎𝟎, 𝟎𝟎𝟎
• Total Klaim kreditur umum:
𝑇𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑙 𝑐𝑟𝑒𝑑𝑖𝑡𝑜𝑟 𝑐𝑙𝑎𝑖𝑚 = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑙𝑎𝑖𝑚 − 𝑃𝑟𝑖𝑜𝑟𝑖𝑡𝑦 𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑇𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑙 𝑐𝑟𝑒𝑑𝑖𝑡𝑜𝑟 𝑐𝑙𝑎𝑖𝑚 = $ 7,000,000 − $ 2,000,000
𝑻𝒐𝒕𝒂𝒍 𝒈𝒆𝒏𝒆𝒓𝒂𝒍 𝒄𝒓𝒆𝒅𝒊𝒕𝒐𝒓 𝒄𝒍𝒂𝒊𝒎 = $ 𝟓, 𝟎𝟎𝟎, 𝟎𝟎0

• Setelah distribusi ke kreditur umum, kekurangan notes payable sebesar $500,000 - $120,000
= $380,000. Oleh karena itu, subordinated debentures harus mendistribusikan $380,000,
menyisakan $600,000 - $380,000 = $220,000 yang diterima oleh subordinated debentures.