1. Spare part manufacturing companies have electricity fuel needs. Projecting its business will grow by 35% per...

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1. Spare part manufacturing companies have electricity fuel needs. Projecting its business will grow by 35% per year for 3 years in a row. After that, the business prospects will experience a constant growth of 5%. This year, the company distributes dividends of IDR 450. The company has a beta of 1.5 while the prevailing rate is 5.5% and the stock market return is 12%.
A. What is the company's cost of equity capital?
B. What is the market price of the stock?
C. What would happen if the current stock market price was IDR 10,000, what would you suggest to the management?

2. PT KDB has a total market value of 300 billion, the company's EBIT is currently 50 billion, while the tax is 30%. The company's business is predicted to grow at a constant 5%. The company intends to make a scenario analysis to find the optimal capital structure
1. Composition of 25% equity and 75% debt. Cost of equity capital Rs = 15% cost of debt capital Rd = 14%
2. Composition of 50% equity and 50% debt. Cost of equity capital Rs = 14% cost of debt capital Rd = 12%
3. Composition of 75% equity and 25% debt. Cost of equity capital Rs = 13% cost of debt capital Rd = 11%
You are asked to help PT KDB and the team to calculate
A. WACC of PT KDB
B. Firm value for each scenario
C. Which scenario should be suggested to obtain optimal capital structure?

3. For the last 10 years PT BOAS has distributed dividends of 40% and total net profit every year with a constant growth rate of 10%. Last year the company's net profit reached Rp 125 billion. At the end of 2019, the company's net profit is predicted to increase by 60% from last year. This is because the first rank competitor is experiencing internal problems and labor strikes in succession in the last few months, while the second rank competitor is experiencing financial difficulties which hinders the smooth running of their business. However, this incident is predicted not to drag on. Next year the companies will return to their respective positions and with a growth rate that is relatively the same as the years before 2019.
A. Calculate the 2019 dividend using constant growth
B. Calculate the 2019 dividend using the dividend ratio that has been applied
C. Calculate the 2019 dividend using pure residual if the target debt is 30% and the company plans to invest Rp. 70 billion in additional production capacity
D. How much extra is the dividend payment with the residual technique compared to the dividend payment with the normal growth scenario?
E. Which dividend policy should be taken? Explain your argument

4. The following is estimated sales and purchases for the next three months (January, February, March 2020) Realized December 2019 sales of IDR 110 billion

Month	Sales (Rp billion)	Purchases (Rp billion)
January	250	100
February	100	120
March	200	100

Question:
A. Make a cash budget for January, February and March 2020
B. If starting January 1, 2020 the company starts implementing a credit sales policy to consumers with a payment period of 30 days and if 50% of consumers/sales accept the offer, how much loan must be submitted to the bank in January?

5. PT ABADI will acquire PT KEKAL. Available data regarding PT KEKAL: Rs = 14%, funding for the acquisition is planned through 25% debt with an interest rate of 11%, and the rest is equity. The tax charged is 30%. Projected free cash flow and interest payments for the first 3 years are as follows:
Years 1 2 3

Year	1	2	3
Free cash flow (Rp billion)	35	65	100
Interest payments (Rp billion)	40	70	65

After the third year, free cash flow is projected to grow at a constant 5% while the capital structure will be 50% balanced between debt and equity with an interest rate of 12%.
A. How much is unleveraged Rs? What is the leverage of Rs and the cost of capital for the period on the horizon?
B. Use the Adjusted Present Value approach to calculate the value of PT KEKAL's operations for PT ABADI?