These trends have been carefully been observed by the management of PT XYZ This company started from a small, family-run business, focusing in raising chickens to produce poultry and eggs. In its development over the last four decades PT. XYZ has since expanded in terms of both their scale and market reach as well as through vertical integration and product differentiation into the processed poultry product lines. They are now able to offer a variety of frozen chicken meat and processed chicken products such as Chicken Nuggets, Chicken Meatballs, Chicken Strips, Chicken Wings and Chicken Loaf.

The company intends to further seek further avenue of growth, by advancing downstream and to expand its product lines from frozen Ready-to-Cook into frozen Ready-to-Eat products. It has been a very dominant trend emerging from the Covid-19 pandemic, as a solution to serve the customers during the recent social restriction. Ms. Sharon, as Head of Business Development for PT. XYZ is currently focusing the companys business strategy into the new market.

PT. XYZ Financial Reports are further present below :

Average Industry data :

Ratio	Industry Norm
Current Ratio	1.47
Quick Ratio	0.6
Inventory Turn Over	11.3
Average Collection Period	28.16
Total Assets Turn Over	0.51
Debt Ratio	0.62

Times Interest Earned	5.20
Gross Profit Margin	33%
Operating Profit Margin	14.53%
Net Profit Margin	10.13%
Return On Assets	7.20%
Return On Equity	24%
P/E Ratio	22
M/B ratio	18.62

Question :

a. PT. XYZ management must accurately set the offering price of the additional shares that will be issued. Following the latest Annual Shareholders meeting the company has just paid out a dividend of Rp 570/per share; Mr. Akmal confidently assesses that the company will experience a super normal rate of growth. This is predominantly based latest update regarding the development Covid-19 vaccines, estimating that most Pharmaceutical companies will be able to complete the last phase of their clinical test by end of 2020 . This has provided some positive sentiment on the potential rebound and recovery of the economy. Based on such news Mr. Akmal predicts that in the next 3 years there will be able to achieve super normal dividend growth of 8%, and for the following two years achieve growth the rate of 6%, before subsequently maintaining a growth rate of 5% perpetually. If the required rate of return is set at 12.5%, what will be the price of PT. XYZ's stock valuation

B.After the successful offering of shares to the public through the companys IPO ten years ago, PT.XYZ is planning their first issuance of corporate bonds for the total amount of Rp. 500 billion with a maturity of 5 years. The funds raised from the bonds will be used to settle the companys outstanding bank loans which are maturing early next year. In agreement with the underwriter the bonds will have minimum denomination of Rp. 50 million and coupon rate of 10%, payable semi-annually. As an investor, your required rate of return is 8%, you are considering investing in the bond but is still unsure if you are able to get the required return.

- If PT. XYZs bonds are sold at the price of Rp. 47.000.000,- will it be worthwhile for you to invest? Please state clearly the underlying reasoning of your assessment

- From a different perspective, please perform the assessment for three groups of Institutional investors which are also interested to purchase PT XYZ bonds, but each has their own required rate of returns, namely set at rate of 7%, 10% and 15% respectively, what will it be the individual value of the bonds from the point of assessment of each of these three groups of institutional investors? Explain the results of your calculation accordingly .

PT XYZ Statement of Profit or Loss for the years Ended 31 December 2020 (internal estimation) and 2019 Sales COGS Gross Profit SGA Expense Operating income Interest income Interest expense Other income Total other(Income) expense Income before income taxes Taxes expense (benefit) Net Income 2020 Rp.8,481,000,000,000 7,476,600,000,000 1,004,400,000,000 439,000,000,000 565,400,000,000 (2.200.000.000) 92.400.000.000 (11.000.000.000) 79,200,000,000 486,200,000,000 79,200,000,000 407,000,000,000 2019 Rp.8,010,400,000,000 6,991,200,000,000 1,019,200,000,000 412,800,000,000 606,400,000,000 (1.400.000.000) 70.000.000.000 11.200.000.000 57,400,000,000 549,000,000,000 (56,400,000,000) 605,400,000,000 PT. XYZ. Statement of Financial Position 31 December 2020 (internal estimation) and 2019 2020 2019 ASSETS Current Assets Cash & Cash Equivalent Rp96.800,000,000 Rp54,000,000,000 Accounts Receivable 434,600,000,000 344,600,000,000 Inventories 821,600,000,000 702,600,000,000 Other Current Assets 80,800,000,000 36,400,000,000 Total Current Assets 1,433,800,000,000 1.137,600,000,000 Net PPE 1,233,800,000,000 1,456,400,000,000 2,168,800,000,000 Goodwill 1.947,800,000,000 Intangible Assets 1,407,400,000,000 1,351,800,000,000 Other Assets 153,000,000,000 150,800,000,000 Total Assets 6,619,400,000,000 5.821,800,000,000 LIABILITIES & S/H EQUITY Current Liabilities Current Debt 420,400,000,000 385,200,000,000 Account Payable Other current liabilities Total current Liabilities 382,200,000,000 338,800,000,000 285,200,000,000 1,006,200,000,000 1,592,400,000,000 421,400,000,000 239,600,000,000 297,000,000,000 1,102,600,000,000 1,966,000,000,000 471,200,000,000 234,400,000,000 3,774,200,000,000 Long Term Debt Differed income taxes Other Liabilities TOTAL LIABILITIES 3,259,600,000,000 Share Holder Equity Common Stock Capital in excess of par Retained earings Acc. Other comprehensive gain loss Treasury Stock Total Equity 9,000,000,000 875,600,000,000 2,757,400,000,000 (23,400,000,000) (773,400,000,000) 2,845,200,000,000 9,000,000,000 877,400,000,000 2,465,800,000,000 3,000,000,000) (787,000,000,000) 2,562.200,000,000 6,619,400,000,000 TOTAL LIABILITIES & EQUITY Number of shares of CS outstanding Market Price Per share 2,000,000,000 5,821,800,000,000 2,000,000,000 1,800 1,900 PT XYZ Statement of Profit or Loss for the years Ended 31 December 2020 (internal estimation) and 2019 Sales COGS Gross Profit SGA Expense Operating income Interest income Interest expense Other income Total other(Income) expense Income before income taxes Taxes expense (benefit) Net Income 2020 Rp.8,481,000,000,000 7,476,600,000,000 1,004,400,000,000 439,000,000,000 565,400,000,000 (2.200.000.000) 92.400.000.000 (11.000.000.000) 79,200,000,000 486,200,000,000 79,200,000,000 407,000,000,000 2019 Rp.8,010,400,000,000 6,991,200,000,000 1,019,200,000,000 412,800,000,000 606,400,000,000 (1.400.000.000) 70.000.000.000 11.200.000.000 57,400,000,000 549,000,000,000 (56,400,000,000) 605,400,000,000 PT. XYZ. Statement of Financial Position 31 December 2020 (internal estimation) and 2019 2020 2019 ASSETS Current Assets Cash & Cash Equivalent Rp96.800,000,000 Rp54,000,000,000 Accounts Receivable 434,600,000,000 344,600,000,000 Inventories 821,600,000,000 702,600,000,000 Other Current Assets 80,800,000,000 36,400,000,000 Total Current Assets 1,433,800,000,000 1.137,600,000,000 Net PPE 1,233,800,000,000 1,456,400,000,000 2,168,800,000,000 Goodwill 1.947,800,000,000 Intangible Assets 1,407,400,000,000 1,351,800,000,000 Other Assets 153,000,000,000 150,800,000,000 Total Assets 6,619,400,000,000 5.821,800,000,000 LIABILITIES & S/H EQUITY Current Liabilities Current Debt 420,400,000,000 385,200,000,000 Account Payable Other current liabilities Total current Liabilities 382,200,000,000 338,800,000,000 285,200,000,000 1,006,200,000,000 1,592,400,000,000 421,400,000,000 239,600,000,000 297,000,000,000 1,102,600,000,000 1,966,000,000,000 471,200,000,000 234,400,000,000 3,774,200,000,000 Long Term Debt Differed income taxes Other Liabilities TOTAL LIABILITIES 3,259,600,000,000 Share Holder Equity Common Stock Capital in excess of par Retained earings Acc. Other comprehensive gain loss Treasury Stock Total Equity 9,000,000,000 875,600,000,000 2,757,400,000,000 (23,400,000,000) (773,400,000,000) 2,845,200,000,000 9,000,000,000 877,400,000,000 2,465,800,000,000 3,000,000,000) (787,000,000,000) 2,562.200,000,000 6,619,400,000,000 TOTAL LIABILITIES & EQUITY Number of shares of CS outstanding Market Price Per share 2,000,000,000 5,821,800,000,000 2,000,000,000 1,800 1,900