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2. PT Ceoc will build a new factory facility. The Finance Section considers the following sources of funds: A. Bonds, issued as many as 30,000 shares with a nominal value of IDR 500,000.- . The market price of the bonds is at exchange rate of 98. The coupon interest rate is 14% per annum and is paid semi- annually. The obligation will mature 8 years later. B. Preferred stock, with par value @ Rp 800,000,-. The dividend rate is 18% and it sells for @ Rp 950,000. Preferred shares will be issued as many as 6,000 shares. C. Ordinary shares, issued as many as 5,000,000 shares with par value @ Rp 3,000,-. Market price @ IDR 4,500,-. Last year's DPS for existing shares was IDR 400/1br, and an estimated dividend growth rate of 8% in the future. Additional data : 30% tax rate, 12% SBI rate pa. What is the wacc value and analyze whether this new factory facility project is feasible if the project generates a cash flow of IDR 9 billion per year for 8 years? Assumption: rate of return = WACC

2. PT Ceoc will build a new factory facility. The Finance Section considers the following sources of funds: A. Bonds, issued as many as 30,000 shares with a nominal value of IDR 500,000.- . The market price of the bonds is at exchange rate of 98. The coupon interest rate is 14% per annum and is paid semi- annually. The obligation will mature 8 years later. B. Preferred stock, with par value @ Rp 800,000,-. The dividend rate is 18% and it sells for @ Rp 950,000. Preferred shares will be issued as many as 6,000 shares. C. Ordinary shares, issued as many as 5,000,000 shares with par value @ Rp 3,000,-. Market price @ IDR 4,500,-. Last year's DPS for existing shares was IDR 400/1br, and an estimated dividend growth rate of 8% in the future. Additional data : 30% tax rate, 12% SBI rate pa. What is the wacc value and analyze whether this new factory facility project is feasible if the project generates a cash flow of IDR 9 billion per year for 8 years? Assumption: rate of return = WACC

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. PT Ceoc will build a new factory facility. The Finance Section considers the following sources of funds: A. Bonds, issued as many as 30,000 shares with a nominal value of IDR 500,000.- . The market price of the bonds is at exchange rate of 98. The coupon interest rate is 14% per annum and is paid semi- annually. The obligation will mature 8 years later. B. Preferred stock, with par value @ Rp 800,000,-. The dividend rate is 18% and it sells for @ Rp 950,000. Preferred shares will be issued as many as 6,000 shares. C. Ordinary shares, issued as many as 5,000,000 shares with par value @ Rp 3,000,-. Market price @ IDR 4,500,-. Last year's DPS for existing shares was IDR 400/lbr, and an estimated dividend growth rate of 8% in the future. Additional data : 30% tax rate, 12% SBI rate pa. What is the wacc value and analyze whether this new factory facility project is feasible if the project generates a cash flow of IDR 9 billion per year for 8 years? Assumption: rate of return = WACC
Transcribed Image Text:2. PT Ceoc will build a new factory facility. The Finance Section considers the following sources of funds: A. Bonds, issued as many as 30,000 shares with a nominal value of IDR 500,000.- . The market price of the bonds is at exchange rate of 98. The coupon interest rate is 14% per annum and is paid semi- annually. The obligation will mature 8 years later. B. Preferred stock, with par value @ Rp 800,000,-. The dividend rate is 18% and it sells for @ Rp 950,000. Preferred shares will be issued as many as 6,000 shares. C. Ordinary shares, issued as many as 5,000,000 shares with par value @ Rp 3,000,-. Market price @ IDR 4,500,-. Last year's DPS for existing shares was IDR 400/lbr, and an estimated dividend growth rate of 8% in the future. Additional data : 30% tax rate, 12% SBI rate pa. What is the wacc value and analyze whether this new factory facility project is feasible if the project generates a cash flow of IDR 9 billion per year for 8 years? Assumption: rate of return = WACC
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