1). In 2019 the number of shares outstanding of PT Telkom was 2,50000 with a market price per share at the end of that year of around IDR 14,000 per share. Investors provided a total cap of Rp. 2 billion. The balance sheet at the end of 2019 shows a total equity of IDR 1.5 billion and an operating profit of IDR 1 billion with an income tax rate of 25% and the cost of corporate capital after tax of 12.75%.

Question

What is the Market Value Added (MVA) and Economic Value Added (EVA) of PT Telkom?

2). PT. TPI will conduct a rights issue with the following conditions. Each owner of 2 old shares has the right to buy 1 new share at a price of IDR 3000 per share. The number of old shares outstanding was 100 million shares with a price in the stock market of IDR 3500 per share.

Questions

a). How much funds will be raised from the rights issue?

b). It is hoped that the proceeds from the rights issue can be invested by generating NPV + IDR 100 billion. What is the share price after the rights issue?