A’lla Zahwa Andewi Nugraheni

464977 / 76D

Financial Management Assigment Week 6

Problem Chapter 14: 14-6, 14-7, 14-10 Chapter 15: 15-5, 15-9.

Problems CH14:
14-6
Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar
heating system. To meet this demand, management plans to expand production capacity by 40%
with a $10 million investment in plant and machinery. The firm wants to maintain a 40% debt-to-
total-assets ratio in its capital structure; it also wants to maintain its past dividend policy of
distributing 45% of last year’s net income. In 2010, net income was $5 million. How much external
equity must Northern Pacific seek at the beginning of 2011 in order to expand capacity as desired?

Diketahui:
Backlog of order = 6 bulan
Debt Ratio = 40%
Investment = $ 10,000,000
Payout ratio = 45%
Net Income 2010 = $ 5,000,000

Ditanya:
Tentukan External Equity pada awal tahun 2011 untuk memperluas kapasitas yang diingingkan?

Jawab :
 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑥 (1 − 𝑃𝑎𝑦𝑜𝑢𝑡 𝑅𝑎𝑡𝑖𝑜)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 5,000,000 𝑥 (1 − 0.45)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 5,000,000 𝑥 (0.55)
𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = $ 2,750,000

 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑥 (1 − 𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜)

𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 10,000,000 𝑥 (1 − 0.4)
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 10,000,000 𝑥 (0.6)
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 6,000,000

 𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 − 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠

𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 = $ 6,000,000 − $ 2.750,000
𝑬𝒙𝒕𝒆𝒓𝒏𝒂𝒍 𝑬𝒒𝒖𝒊𝒕𝒚 = $ 𝟑,𝟐𝟓𝟎,𝟎𝟎𝟎

Maka External Equity pada awal tahun 2011 untuk memperluas kapasitas yang diinginkan
sebesar $ 3,250,000

14-7
Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is
$3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after
the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would
you expect the stock price to be?

Diketahui:
2-for-1 stock split
N = 2,000
EPS = $10
DPS = $3
P0 = $80

Ditanya:
Hitung nadjusted, EPSadjusted, DPSadjusted, dan Padjusted?

Jawab:
𝑛adjusted = 𝑛 𝑥 2
𝑛adjusted = 2,000 𝑥 2
𝒏adjusted = 𝟒, 𝟎𝟎𝟎
Jadi jumlah saham setelah di split adalah 4,000 lembar
𝐸𝑃𝑆
𝐸𝑃𝑆adjusted = 2
$10
𝑬𝑷𝑺adjusted = 2
𝑬𝑷𝑺adjusted = $ 𝟓
EPS setelah saham di split adalah sebesar $ 5
𝐷𝑃𝑆
𝐷𝑃𝑆adjusted = 2
3
𝑫𝑷𝑺adjusted = 2
𝑫𝑷𝑺adjusted = $𝟏. 𝟓𝟎
DPS setelah saham di split sebesar $ 1.50
𝑃𝑜
𝑃adjusted = 2
$80
𝑷adjusted =
2
𝑷adjusted = $ 𝟒𝟎
Jadi ekspektasi harga saham setelah di split sebesar $ 40 per lembar

14-10
In 2010, the Keenan Company paid dividends totaling $3.6 million on net income of $10.8 million.
The year was a normal one, and earnings have grown at a constant rate of 10% for the past 10
years. However, in 2011, earnings are expected to jump to $14.4 million, and the firm expects to
have profitable investment opportunities of $8.4 million. It is predicted that Keenan will not be
able to maintain the 2011 level of earnings growth—the high 2011 projected earnings level is due
to an exceptionally profitable new product line to be introduced that year—and then the company
will return to its previous 10% growth rate. Keenan’s target debt ratio is 40%.
a. Calculate Keenan’s total dividends for 2011 if it follows each of the following policies:
1. Its 2011 dividend payment is set to force dividends to grow at the long-run growth rate
in earnings.
 2. It continues the 2010 dividend payout ratio.
3. It uses a pure residual policy with all distributions in the form of dividends (40% of the
$8.4 million investment is financed with debt).
4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based
on the long-run growth rate and the extra dividend being set according to the residual
policy.
b. Which of the preceding policies would you recommend? Restrict your choices to the ones
listed, but justify your answer.
c. Does a 2011 dividend of $9 million seem reasonable in view of your answers to parts a and
b? If not, should the dividend be higher or lower.

Diketahui:
Dividends2010 (D0) = $3.6 M
Net Income2010 = $10.8 M
g = 10 % (konstan selama 10 tahun)
Expected Net Income2011 = $ 14.4 M
Expected Investment2011 = $ 8.4 M
Debt ratio = 40%

Ditanya:
a. Hitung D1 berdasarkan kebijakan berikut, bila :
1. Pembayaran dividen 2011 ditetapkan untuk memaksa dividen tumbuh pada tingkat
pertumbuhan jangka panjang dalam pendapatan.
2. Melanjutkan rasio pembayaran dividen 2010.
3. Menggunakan kebijakan residual murni dengan semua distribusi dalam bentuk
dividen (Debt ratio = 40% dari $8.4 M)
4. Menggunakan kebijakan dividen-plus-ekstra reguler, dengan dividen reguler
didasarkan pada tingkat pertumbuhan jangka panjang dan dividen tambahan
ditetapkan sesuai dengan kebijakan residual.
b. Kebijakan manakah yang anda rekomendasikan? Jelaskan.
c. Apakah D1 sebesar $ 9 juta tampak masuk akal mengingat jawaban untuk bagian a dan b?
Jika tidak, apakah dividennya harus lebih tinggi atau lebih rendah?

Jawab:
a. Menghitung Dividen
1. 𝐷1 = 𝐷𝑜(1 + 𝑔)
𝐷1 = $ 3,600,000(1 + 0.1)
𝑫𝟏 = $ 3,600,000(1.1) = $ 𝟑,𝟗𝟔𝟎,𝟎𝟎𝟎𝟎

Dividends2010
2. 𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 = Net Income2010
$ 3,600,000
𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 = $ 10,800,000
𝑃𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜2010 = 0.3333 ≈ 33.33%

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2011 = 𝑃𝑎𝑦𝑜𝑢𝑡 𝑅𝑎𝑡𝑖𝑜2010 𝑥 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒2011

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2011 = 0.3333 𝑥 $ 14,400,000
 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔2011 = $ 4, 799,520 ≈ $ 𝟒,𝟖𝟎𝟎,𝟎𝟎0

3. 𝐸𝑞𝑢𝑖𝑡𝑦 = 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡2011 (1 − 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜)

𝐸𝑞𝑢𝑖𝑡𝑦 = $ 8,400,000(1 − 0.4)
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 8,400,000(0.6)
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 5,040,000

𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒2011 − 𝐸𝑞𝑢𝑖𝑡𝑦

𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = $ 14,400,000 − $ 5,040,000
𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 = $ 14,400,000 − $ 5,040,000
𝑫𝒊𝒔𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑷𝒂𝒊𝒅2011 = $ 𝟗, 𝟑𝟔𝟎,𝟎𝟎0

4. Regular dividends akan mengikuti tingkat pertumbuhan (g=10%)

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular = 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠2010(1 + 𝑔)
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular = $ 3,600,000(1 + 0.1)
𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔regular = $ 3,600,000(1.1) = $ 𝟑,𝟗𝟔𝟎,𝟎𝟎𝟎𝟎

Dividen tambahan ditetapkan sesuai dengan kebijakan residual berdasarkan

perhitungan (3) sebesar $ 9,360,000, maka :
𝐸𝑥𝑡𝑟𝑎 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 = 𝐷𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑃𝑎𝑖𝑑2011 – 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠regular
𝐸𝑥𝑡𝑟𝑎 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 = $ 9,360,000 − $ 3,960,000 𝑬𝒙𝒕𝒓𝒂 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔 = $ 𝟓,𝟒𝟎𝟎,𝟎𝟎0

b. Kebijakan 4, berdasarkan dividen biasa dengan ekstra, tampaknya paling logis. Jika
diterapkan dengan benar, ini akan menghasilkan anggaran modal yang benar dan
pembiayaan yang benar dari anggaran itu serta akan memberikan preferensi yang benar
dan paling optimal kepada investor. Sehingga berdasarkan keempat perhitungan pada
bagian (a) maka kebijakan ini yang paling direkomendasikan.

c. Dividen tahun 2011 sebesar $ 9M dihitung berdasarkan model residual. Tapi kebijakan
model residual hanya terdiri tiga faktor fungsi didalamnya, yaitu : peluang investasi
perusahaan, struktur modal targetnya, ketersediaan dan biaya modal eksternal. Sedangkan
untuk mendapatkan rasio distribusi optimal diperlukan satu faktor lagi, yaitu preferensi
investor untuk dividen versus capital gain. Perusahaan menggunakan kebijakan residual
untuk membantu rasio distribusi target jangka panjang mereka, tetapi bukan sebagai
panduan untuk distribusi dalam satu tahun. Sehingga hanya berpatokan pada pembagian
dividen menggunakan kebijakan residual adalah tidak ideal. Kebijakan yang paling ideal
adalah dengan kebijakan regular-dividend-plus-extras yang memastikan bahwa dividen
reguler dapat dipertahankan dan bahwa pemegang saham dapat mengandalkan penerimaan
dividen itu dalam segala kondisi. Ini berarti perhitungan pembagian dividen yang masuk
akal dan ideal adalah dibawah $ 9M berdasarkan perhitungan pada bagian a (4), yaitu
sebesar $5,400,000.

CH15
15-5
Lee Manufacturing’s value of operations is equal to $900 million after a recapitalization (the firm
had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock.
Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm
had 30 million shares before the recap. What is P (the stock price after the recap)?

Diketahui:
Vop New = $ 900,000,000
DNew = $ 300,000
DOld = 0 (Perusahaan tidak mempunyai hutang sebelum rekapitalisasi) Perusahaan tidak
mempunyai hutang sebelum rekapitalisasi
Lee tidak mempunyai investasi jangka pendek sebelum dan sesudah rekapitalisasi
Wd = 1/3
NPrior = 30,000,000

Ditanya:
PPost?

Jawab:
(VOp New−DOld)
𝑃𝑃𝑜𝑠𝑡 = nPrior
($ 900,000,000 − 0)
𝑃𝑃𝑜𝑠𝑡 =
30,000,000
𝑷𝑷𝒐𝒔𝒕 = $ 𝟑𝟎
Maka harga saham setelah rekapitalisasi sebesar $ 30

15-9.
Pettit Printing Company has a total market value of $100 million, consisting of 1 million shares
selling for $50 per share and $50 million of 10% perpetual bonds now selling at par. The
company’s EBIT is $13.24 million, and its tax rate is 15%. Pettit can change its capital structure
either by increasing its debt to 70% (based on market values) or decreasing it to 30%. If it decides
to increase its use of leverage, it must call its old bonds and issue new ones with a 12% coupon. If
it decides to decrease its leverage, it will call its old bonds and replace them with new 8% coupon
bonds. The company will sell or repurchase stock at the new equilibrium price to complete the
capital structure change. The firm pays out all earnings as dividends; hence its stock is a zero-
growth stock. Its current cost of equity, rs, is 14%. If it increases leverage, rs will be 16%. If it
decreases leverage, rs will be 13%. What is the firm’s WACC and total corporate value under each
capital structure?

Diketahui:
Total Market Value = $ 100,000,000 (terdiri dari 1,000,000 saham dijual $ 50 per saham dan
50,000,000 dari 10% obligasi dijual pada nilai par)
EBIT = $ 13,240,000
Tax rate = 15%
Perusahaan dapat merubah struktur modal dengan :
i. Menaikkan struktur hutang menjadi 70% (berdasarkan market value)
ii. Menurunkan struktur hutang menjadi 30%
Bila diputuskan menaikkan leverage → obligasi lama dibatalkan dan akan dikeluarkan obligasi
baru dengan coupon 12% (rS = 16%)
Bila diputuskan menurunkan leverage → obligasi lama dibatalkan dan akan dikeluarkan obligasi
dengan coupon 8% (rS = 13%)
rS current = 14%

Ditanya:
WACC dan Total Corporate Value untuk tiap struktur modal?

Jawab:
a. Menghitung WACC
 Kondisi Sekarang
𝐸𝑞𝑢𝑖𝑡𝑦 = $ 50 𝑥 1,000,000 = $ 50,000,000
Total Equity
𝑤s = Total Market Value
$ 50,000,000
ws =
$ 100,000,000
ws = 0.5
𝐷𝑒𝑏𝑡 = $ 50,000,000
Total Debt
𝑤d = Total Market Value
$ 50,000,000
wd = $ 100,000,000
wd = 0.5
𝑊𝐴𝐶𝐶current = 𝑤d (1 − 𝑇)𝑟d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶current = 0.5(1 − 0.15)0.1 + 0.5(0.14)
𝑊𝐴𝐶𝐶current = 0.0425 + 0.07
𝑾𝑨𝑪𝑪current = 0.1125 ≈ 𝟏𝟏.𝟐𝟓%

 Kondisi bila perusahaan menaikkan leverage (ws = 70%)

𝑊𝐴𝐶𝐶debt increasing = 𝑤d (1 − 𝑇)𝑟d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶debt increasing = 0.7(1 − 0.15)0.12 + 0.3(0.16)
𝑊𝐴𝐶𝐶debt increasing = 0.0714 + 0.048
𝑾𝑨𝑪𝑪debt increasing = 0.1194 ≈ 𝟏𝟏.𝟗𝟒%

 Kondisi bila perusahaan menurunkan leverage (wd = 30%)

𝑊𝐴𝐶𝐶debt decreasing = 𝑤d (1 − 𝑇)𝑟d + 𝑤s 𝑟s
𝑊𝐴𝐶𝐶debt decreasing = 0.3(1 − 0.15)0.08 + 0.7(0.13)
𝑊𝐴𝐶𝐶debt decreasing = 0.0204 + 0.091
𝑊𝐴𝐶𝐶debt decreasing = 0.1114 ≈ 𝟏𝟏.𝟏𝟒%

b. Menghitung Nilai Total Corporate Value untuk tiap struktur Modal :

 Kondisi Sekarang (debt = 50%)
FCF
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 = WACCcurrent
EBIT (1 − T)
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 = WACCcurrent
$ 13,240,000 (1 − 0.15)
𝑉𝑐𝑢𝑟𝑟𝑒𝑛𝑡 = 0.1125
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒄𝒖𝒓𝒓𝒆𝒏𝒕 = = $ 𝟏𝟎𝟎,𝟎𝟑𝟓,𝟓𝟓𝟔
𝟎.𝟏𝟏𝟐𝟓

 Kondisi debt = 70%

FCF
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 =
WACCdebt increasing
 EBIT (1 − T)
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = WACCdebt increasing
$ 13,240,000 (1 − 0.15)
𝑉𝑑𝑒𝑏𝑡 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = 0.1194
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒅𝒆𝒃𝒕 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒊𝒏𝒈 = = $ 𝟗𝟒, 𝟐𝟓𝟒,𝟔𝟎𝟔
0.1194

 Kondisi debt = 30%

FCF
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = WACCdebt decreasing
EBIT (1 − T)
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = WACCdebt decreasing
$ 13,240,000 (1 − 0.15)
𝑉𝑑𝑒𝑏𝑡 𝑑𝑒𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 = 0.1114
$ 𝟏𝟏,𝟐𝟓𝟒,𝟎𝟎𝟎
𝑽𝒅𝒆𝒃𝒕 𝒅𝒆𝒄𝒓𝒆𝒂𝒔𝒊𝒏𝒈 = = $ 𝟏𝟎𝟏,𝟎𝟐𝟑,𝟑𝟑9
0.1114