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12 - Cost of Capital
12 - Cost of Capital
12 - Cost of Capital
I.K. Gunarta
Alternatif Sumber Pendanaan Proyek Industri
Penerbitan Obligasi
Pinjaman Saham
Cost of Capital
Long-term Debt
Preferred Stock
Common Equity
Assets Liabilities & Equity
Current assets Current Liabilities
Long-term Debt
Capital Structure Preferred Stock
Common Equity
Cost of Capital
Kd = kd (1 - T)
After-tax Before-tax Marginal
% cost of = % cost of x - tax
Debt Debt
1 rate
Kd = kd (1 - T)
FV = -1000 0
-950
1
100
2
100
3
100
4
100
5
100
…
…
20
1100
kd 10.61%
PV = 950
solve: I = 10.61% = kd
▪ After-tax cost of debt:
Kd = kd (1 - T)
Kd = .1061 (1 - .34)
Kd = .07 = 7%
▪ Pre-tax cost of debt: (using TVM)
P/Y = 2 N = 40
PMT = -50
FV = -1000 So, a 10% bond
PV = 950 costs the firm
solve: I = 10.61% = kd only 7% (with
▪ After-tax cost of debt: flotation costs)
Kd = kd (1 - T) since the interest
Kd = .1061 (1 - .34) is tax deductible.
Kd = .07 = 7%
Cost of Preferred Stock
D Dividend
kp = =
Po Price
Cost of Preferred Stock
▪ Recall:
D Dividend
kp = =
Po Price
D Dividend
kp = =
Po Price
D Dividend
kp = =
Po Price
D Dividend
kp = =
NPo Net Price
Cost of Preferred Stock
D Dividend
kp = =
NPo Net Price
8.00
= =
74.00
Cost of Preferred Stock
D Dividend
kp = =
NPo Net Price
8.00
= = 10.81%
74.00
Cost of Common Stock
D1
kc = +g
Po
Cost of Common Equity
D1
kc = +g
Po
D1
kc = +g
Po
D1
knc = NPo + g
Cost of External Equity
D1
knc = NPo + g
Capital
Source Cost Structure
debt 6% 20%
preferred 10% 10%
common 16% 70%
Weighted Cost of Capital
(20% debt, 10% preferred, 70% common)