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PT Uhuy is considering the following investment alternatives: PT Uhuy is known that the risk-free investment level is 6.5%, the systematic risk of the company
PT Uhuy is considering the following investment alternatives: PT Uhuy is known that the risk-free investment level is 6.5%, the systematic risk of the company is 0.5, and the equity risk premium is 10%. PT Uhuy has 1,000,000 stocks outstanding, sold at $75 per share. The company currently has bonds with semiannual payment, a par value of Rp50 million, maturities of 5 years, a coupon rate of 7%, and the bonds are sold at a price of 90% of the par value. The company's marginal tax rate is known to be 35%. With the information above, you are asked to: a. Calculate cost of equity and cost of debt. b. Calculate WACC PT Uhuy. c. Based on the results in point (b), which investment is worth investing in
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