PROBLEM: CAPITAL STRUCTURE THEORY

Name : ________________________________________
I/C Number : ________________________________________

You are given the following information for the Format Co,:
EBIT = $151.52
Tc = = 34%
D = $500
rU = 0.20

The cost of debt is 10 percent. What is the value of Forma’s equity? What is the cost of
equity capital for format? What is the WACC? Assume that all EBIT are perpetuities.

Jawaban:

1. What is the value of Forma’s equity?

EBIT −Taxes
Vu=
Ru
EBIT x ( 1−Tc )
Vu=
Ru
$ 151.52 x (1−34 %)
Vu=
0.20
$ 100
Vu=
0.20
Vu=$ 500

Nilai perusahaan dengan hutang adalah:

VL=Vu+(TC x D)
VL=$ 500+( 0.35 x $ 500)
VL=$ 500+ $ 170
VL=$ 670
Karena perusahaan bernilai total $670, hutang bernilai $500 dan ekuitas bernilai $170
E=V L −D
E=$ 670−$ 500
E=$ 170
2. What is the cost of equity capital for format?
Perhitungan cost equity adalah:

R E = Ru + ( Ru −RD ) x ( DE ) x (1−T )
c

$ 500
R E = 0.20 + (0.20 – 0.10) x x (1 – 0.34)
170
R E = 39.4%
3. What is the WACC?
E D
WACC = x RE + x 10% x ( 1−T c )
VL VL
$ 170 $ 500
WACC = x ( 39.4 % ) + x 10% x (1 – 0.34)
$ 670 $ 670
WACC =14.92%

Notice that this is substantially lower than the cost of capital for the firm with no debt
(RU 20%), so debt financing is highly advantageous.