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question 1 Investment in the bakery business requires an initial investment of Rp170, 000 , 000 and is estimated to provide net cash inflow for
question 1 Investment in the bakery business requires an initial investment of Rp170,000,000 and is estimated to provide net cash inflow for 6 (six) years with details starting from the first year to the sixth year is Rp25,000,000; Rp30,000,000; Rp50,000,000; Rp55,000,000; Rp60,000,000; and Rp75,000,000. a. If the required return rate is 16%, calculate the amount of NPV! b. If the required rate of return is 14%, calculate the magnitude of PI! Question 2 The corporate capital structure consists of $ 1,400,000 debt (12% interest), $ 500,000 preferred stock with 8% dividend, and 30,000 ordinary shares. The company is currently considering an expansion that is estimated to require $ 2,250,000 in funding. To fund the expansion plan, the company has two alternative funding structures. The first alternative is a $ 1,250,000 bank debt composition with 12% interest and the rest is obtained from new ordinary shares @ $ 40 per sheet. Meanwhile, the second alternative consists of a $ 750,000 bank loan with 12% interest, plus a $ 750,000 preferred stock with an 8% dividend, and the rest of the new ordinary stock @ $ 40 per sheet. If the tax rate is 25%, calculate the magnitude of the EBIT indifference point for both funding alternatives and calculate the magnitude of the EPS! Question 3 A company has a source of funding consisting of bonds, preferred shares, and common stock with the following characteristics. a. Bonds: nominal bonds of Rp1,500 per sheet, with a market price of Rp1,750, a 7-year term and a coupon of 11%. The bond issuance fee is Rp50 per sheet. b. Preferred shares: Each preferred stock has a nominal value of Rp10,000 per share sold for Rp9,800 with a dividend of 8% and an emission fee of Rp50 per sheet. c. Ordinary shares: the company has a nominal ordinary stock of Rp1,250 per sheet. Currently, the stock price is sold at Rp1,300. Last year, the firm recorded an ROE of 18% and the company consistently shared a dividend of 60% of profits earned in the current year. The last dividend paid is Rp75 per sheet. Meanwhile, the cost of stock emissions is Rp50 per sheet. The Company stipulates that the composition of the company's capital structure consists of 25% of the bond, 60% of the ordinary stock, and the remaining preferred stock. If the tax rate is 25%, calculate the total weighted average cost of capital (WACC) of the company! question 4 Calculate the size of the internal rate of return from the flow of funds for the initial investment of Rp1.25 billion, while the amount of annual net cash inflow (Rupiah) from the investment up to the 5th year is shown in the following table.
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