1. Sekolah Dasar
  2. Sekolah Menengah Pertama
  3. Sekolah Menengah Atas
  4. Mata Pelajaran
  5. Programming

4. Rogers Company is currently in this situation: (1) EBIT

Berikut ini adalah pertanyaan dari almakmuriyahnurul pada mata pelajaran Ekonomi untuk jenjang Sekolah Menengah Atas

4. Rogers Company is currently in this situation: (1) EBIT = $4.7 million; (2) tax rate, T = 40%; (3) debt amount, D = $2 million; (4) rd = 10%; (5) rs = 15%; (6) outstanding shares, n = 600,000; and the share price, P = $30. The market for companies is stable and does not expect growth, so all earnings are paid out as dividends. Payables consist of perpetual bonds.a. What is the total market value of the company's stock, S, and the total market value of the company, V?
b. What is the company's weighted average cost of capital?
c. Suppose a company can increase its debt so that its capital structure has 50% debt, based on market value (it will issue debt and buy back shares). At this level of debt, the cost of equity rises to 18.5% and the interest rate on all debt will rise to 12% (should call and repay old debt). What is the WACC under this capital structure? What is the total value? How much debt will be issued, and what will the share price be after the buyback? How many shares will remain outstanding after the buyback?​

Jawaban dan Penjelasan

Berikut ini adalah pilihan jawaban terbaik dari pertanyaan diatas.

Jawaban:

a. The total market value of the company's stock, S, is $18 million ($30 x 600,000 shares). The total market value of the company, V, is $20 million ($18 million in stock + $2 million in debt).

b. The company's weighted average cost of capital (WACC) is 12.6%. WACC = (40% x 10%) + (60% x 15%) = 4.0% + 9.0% = 13%.

c. Under the new capital structure with 50% debt, the WACC is 14.5%. WACC = (50% x 12%) + (50% x 18.5%) = 6% + 9.25% = 15.25%. The total value of the company is $20 million. The company will need to issue $10 million in debt ($20 million x 50%). The share price will be $20 after the buyback ($10 million / 500,000 shares). There will be 500,000 shares outstanding after the buyback.

Semoga dengan pertanyaan yang sudah terjawab oleh stefanaldrich123 dapat membantu memudahkan mengerjakan soal, tugas dan PR sekolah kalian.

Apabila terdapat kesalahan dalam mengerjakan soal, silahkan koreksi jawaban dengan mengirimkan email ke yomemimo.com melalui halaman Contact

Last Update: Sat, 08 Apr 23
<< Previous Post
Next Post >>