In October $2023$ PT$.$DoReMi made a work plan for $2024.$ One of the things that management

flat company is the profit budget in $20242026.$

From various existing data, a profit budget for $2024$ is prepared as follows:

Sales $7,000,000,000$

BPP $4,100,000,000$

Gross Profit $2,900,000,000$

Operational Expenses:

Salary $720,000,000$

Electricity & Telephone Expenses $360,000,000$

Office Rent Expenses $360,000,000$

Transportation Expenses $180,000,000$

Total Operational Expenses $1,620,000,000$

Operating Profit $1,280,000,000$

The profit budget is prepared with the assumption that there is no bank debt or bonds.

For $2025,$ it is estimated that the amount of income and expenses $($except interest expenses$)$ will increase by $20\%$ compared

in $2024.$ For $2026,$ it is estimated that total income and expenses $($except interest expenses$)$ will increase by $20\%$

compared to $2025.$

To support its operations the company plans to borrow funds from banks and issue bonds. There are several

bank that offers loans to PT$.$ DoReMi. There are also several creditors who have offered to buy

bonds to be issued by PT$.$ DoReMi.

PT$.$ DoReMi plans to issue $5$ year bonds with an interest rate of $20\%.$ PT$.$DoReMi will also

apply for a loan from the bank of IDR $3$ billion.

Bim Bank offers a loan of IDR $3$ billion with an interest rate of $15\%$ for $2024.$ Meanwhile, the

interest for the following year uses a floating interest rate, according to the prevailing interest rate. Estimated

the interest rate in $2025$ will be $20\%$ and in $2026$ it will be $24\%.$

Sum Bank offers a loan of US $ $187,500$ with an interest rate of $10\%$ for $2024.$ Meanwhile

The interest rate for the following year uses a floating interest rate, according to the prevailing interest rate.

It is estimated that the interest rate in $2025$ will be $12\%$ and in $2026$ it will be $20\%.$ Rupiah exchange rate against the dollar

estimated at IDR $16,000$ at the beginning of $2024$ and IDR $16,500$ at the end of $2024$ and IDR $17,000$ at

end of $2024$ and $17,500$ at the end of $2025$ and $18,000$ at the end of $2026$

Big Bank offers a loan of US $ $187,500$ with an interest rate of $10\%$ for $2024.$ Meanwhile

The interest rate for the following year uses a floating interest rate, according to the prevailing interest rate.

It is estimated that the interest rate in $2025$ will be $15\%$ and in $2026$ it will be $20\%.$ Rupiah exchange rate against the dollar

estimated at IDR $16,000$ in early $2024$ and IDR $16,500$ in early $2024$ and IDR $17,000$ in

end of $2024$ and amounting to $17,500$ at the end of $2025$ and amounting to $18,000$ at the end of $2026.$ Companies can

hedge at an exchange rate of IDR $16,700$ per dollar, which means hedging costs are required

amounting to IDR $131,250,000$ per year.

In order to manage the company's financial risks $-$ which one should company management choose from three alternatives?

financial financing? Why $?$