The document discusses the following topics: 1) Cost of debt, cost of preferred stock, and cost of common stock equity. Formulas are provided for calculating each. 2) Worked examples are shown for calculating cost of preferred stock and cost of equity using the dividend growth model and CAPM approaches. 3) The weighted average cost of capital (WACC) formula is presented and it is noted that WACC depends on cost of debt, cost of preferred stock, cost of common stock equity and their respective weights. 4) An example is given of calculating the cost of equity given information about a company's WACC, cost of debt, capital structure, and tax rate. 5) The final section

1. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
BIAYA MODAL (COST OF CAPITAL)
Biaya modal penerbitan obligasi
Biaya modal penerbitan saham preferen
Biaya modal penerbitan saham biasa dan saldo laba

2. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
rd = r (1-T)
kd = cost of debt
r = required rate of return
T = tax

3. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
The Heuser Company’s currently outstanding 10% coupon
bonds have a yield to maturity of 12%. Heuser believes it could
issue at par new bonds that would provide a similar yield to
maturity. If its marginal tax rate is 35%, what is Heuser’s after
tax cost of debt?

4. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
rps = Dps/Pn
rps = cost of preferred stock
Dps = Dividend of preferred stock
Pn = price the firm receives after deductinf flotation costs

5. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
Trivoli Industries plans to issue $100 par preferred stock with
an 11 percent dividend. The stock is selling on the market for
$97.00, and Trivoli must pay flotation costs of 5% of the market
price. What is the cost of the preferred stock?

6. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
rs = (D1/Po) +g
rs = (D0 (1 + g)/Po) + g
g = ROE (1-payout ratio)

7. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
rM = rf + (rM-rf) b

8. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
rs = Bond yield + Risk Premium

9. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
The earnings, dividends, and stock price of Carpetto
Technologies Inc. Are expected to grow at 7% per year in future.
Carpetto’s common stock sells for $23 per share, its last
dividend was $2.00 and the company will pay a dividend of
$2.14 at the end of current year.
a.Using DCF approach, what is the cost of equity?
b.If the firm’s beta is 1.6, the risk-free rate is 9%, and the
expected return on the market is 13%, what will be the firm’s
cost of equity using the CAPM approach?
c.If the firm’s bonds earn a return of 12%, what will the cost of
equity be using the-bond-yield-plus-risk premium approach?

10. Tahun lalu PT.PACKERS membayar dividen sebesar Rp 3600,-per
lembar saham dan sahamnya saat ini terjual dengan harga Rp 60.000
per lembar. Suku bunga bebas risiko adalah 11% dan suatu saham
rata-rata memberikan rate of return yang diharapkan sebesar 14%.
Beta saham PT. PACKERS adalah 1,51. Saham preferen dapat dijual ke
publik dengan harga Rp 100.000 per lembar dengan dividen Rp
11.000. Flotation cost adalah Rp 5.000 per lembar. Pajak ditetapkan
40% dan hutang dapat dijual dengan membayar bunga 12%. Investor
mengharapkan pendapatan dan dividen bertumbuh 9% per tahun
Pertanyaan:
Hitunglah komponen biaya hutang, biaya saham preferen dan biaya
ekuitas !

11. Tahun lalu PT.PACKERS membayar dividen sebesar Rp 3600,-
per lembar saham dan sahamnya saat ini terjual dengan harga
Rp 60.000 per lembar. Suku bunga bebas risiko adalah 11%
dan suatu saham rata-rata memberikan rate of return yang
diharapkan sebesar 14%. Beta saham PT. PACKERS adalah 1,51.
Saham preferen dapat dijual ke publik dengan harga Rp
100.000 per lembar dengan dividen Rp 11.000. Flotation cost
adalah Rp 5.000 per lembar. Pajak ditetapkan 40% dan hutang
dapat dijual dengan membayar bunga 12%.
Pertanyaan:
Hitunglah komponen biaya hutang, biaya saham preferen dan
biaya ekuitas !

12. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
WACC = wd.rd(1-T) + wps.rps + ws.rs

13. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
David Ortiz Motors has a target capital structure of 40% debt and
60% equity. The yield to maturity on the company’s outstanding
bonds is 9% and the company’s tax rate is 40%. Ortiz’s CFO has
calculated the company’s WACC as 9.96%. What is the company’s
cost of equity capital

14. Rahmasari Fahria Fakultas Ekonomi Universitas Mataram
Faktor-faktor yang mempengaruhi WACC