Pertemuan ke-8 BIAYA MODAL

1. Pertemuan ke-8BIAYA MODAL

2. Kita sudah mempelajari... • Keterampilan Dasar: (Laporan keuangan, Time value of money) • Investasi: (Imbalan dan Risiko, Obligasi, Saham) • Keuangan Korporasi: (Penganggaran Modal)

3. Kita akan membahas... • Keuangan Korporasi:(Keputusan Pendanaan) Biaya Modal Leverage Struktur Permodalan Dividends

4. Aktiva Pasiva . Aktiva Lancar Utang Japen Aktiva Tetap Utang Japan Saham Preferens Saham Biasa

5. The investment decision Aktiva Pasiva . Aktiva Lancar Utang Japen Aktiva Tetap Utang Japan Saham Preferens Saham Biasa

6. Aktiva Pasiva . Aktiva Lancar Utang Japen Aktiva Tetap Utang Japan Saham Preferens Saham Biasa

7. Keputusan Pendanaan Aktiva Pasiva . Aktiva Lancar Utang Japen Aktiva Tetap Utang Japan Saham Preferens Saham Biasa

8. Aktiva Pasiva . Aktiva Lancar Utang Japen Aktiva Tetap Utang Japan Saham Preferens Saham Biasa

9. Aktiva Pasiva . Aktiva Lancar Utang Japen Utang Japan Saham Preferens Saham Biasa } Struktur Permodalan

10. Pentingnya Biaya Modal • Bagi Investor, tingkat imbalan sekuritas adalah manfaat dari investasi. • Bagi Manajer, tingkat imbalan sekuritas yang sama adalah biaya atas pemerolehan dana yang dibutuhkan untuk menjalankan perusahaan. • Dengan kata lain, biaya pemerolehan dana adalah biaya modal perusahaan.

11. Bagaimana cara perusahaan memperoleh modal? • Menerbitkanobligasi • Menerbitkansahampreferens • Menerbitkansahambiasa • Setiappenerbitansekuritasberimplikasitingkatimbalanbagi investor. • Tingkat imbalaniniadalahbiayabagiperusahaan. • “Biaya modal”mengacupada the weighted average cost of capital (WACC) – rata-rata tertimbangbiayadana.

12. Biaya Utang

13. Biaya Utang Dari sudutpandangemiten (perusahaanpenerbit), biaya modaladalah: • the rate of return required by investors, • adjusted for flotation costs (any costs associated with issuing new bonds), and • adjusted for taxes.

14. Example: Tax effects of financing with debt with stockwith debt EBIT 400,000 400,000 - interest expense 0(50,000) EBT 400,000 350,000 - taxes (34%) (136,000)(119,000) EAT 264,000 231,000

15. Example: Tax effects of financing with debt with stockwith debt EBIT 400,000 400,000 - interest expense 0(50,000) EBT 400,000 350,000 - taxes (34%) (136,000)(119,000) EAT 264,000 231,000 • Now, suppose the firm pays $50,000 in dividends to the stockholders.

16. Example: Tax effects of financing with debt with stockwith debt EBIT 400,000 400,000 - interest expense 0(50,000) EBT 400,000 350,000 - taxes (34%) (136,000)(119,000) EAT 264,000 231,000 - dividends (50,000) 0 Retained earnings 214,000 231,000

17. 1 = - After-tax Before-tax Marginal % cost of % cost of x tax Debt Debt rate

18. 1 = - After-tax Before-tax Marginal % cost of % cost of x tax Debt Debt rate Kd = kd (1 - T)

19. 1 = - After-tax Before-tax Marginal % cost of % cost of x tax Debt Debt rate Kd = kd (1 - T) .066 = .10 (1 - .34)

20. Example: Cost of Debt • Prescott Corporation issues a $1,000 par, 20 year bond paying the market rate of 10%. Coupons are annual. The bond will sell for par since it pays the market rate, but flotation costs amount to $50 per bond. • What is the pre-tax and after-tax cost of debt for Prescott Corporation?

21. Pre-tax cost of debt: (using TVM) P/Y = 2 N = 40 PMT = -50 FV = -1000 PV = 950 solve: I = 10.61% = kd • After-tax cost of debt: Kd = kd (1 - T) Kd = .1061 (1 - .34) Kd = .07 = 7%

22. 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%

23. Cost of Preferred Stock • Finding the cost of preferred stock is similar to finding the rate of return, (from Chapter 8) except that we have to consider the flotation costs associated with issuing preferred stock.

24. Cost of Preferred Stock • Recall:

25. Cost of Preferred Stock • Recall: kp = = Dividend Price D Po

26. Cost of Preferred Stock • Recall: kp = = • From the firm’s point of view: Dividend Price D Po

27. D NPo Cost of Preferred Stock • Recall: kp = = • From the firm’s point of view: kp = = Dividend Price D Po Dividend Net Price

28. D NPo Cost of Preferred Stock • Recall: kp = = • From the firm’s point of view: kp = = NPo = price - flotation costs! Dividend Price D Po Dividend Net Price

29. Example: Cost of Preferred • If Prescott Corporation issues preferred stock, it will pay a dividend of $8 per year and should be valued at $75 per share. If flotation costs amount to $1 per share, what is the cost of preferred stock for Prescott?

30. Cost of Preferred Stock

31. D NPo Cost of Preferred Stock Dividend Net Price kp = =

32. D NPo Cost of Preferred Stock Dividend Net Price kp = = = = 8.00 74.00

33. D NPo Cost of Preferred Stock Dividend Net Price kp = = = = 10.81% 8.00 74.00

34. Cost of Common Stock • There are 2 sources of Common Equity: 1) Internal common equity (retained earnings), and 2) External common equity (new common stock issue) Do these 2 sources have the same cost?

35. Cost of Internal Equity • Since the stockholders own the firm’s retained earnings, the cost is simply the stockholders’ required rate of return. • Why? • If managers are investing stockholders’ funds, stockholders will expect to earn an acceptable rate of return.

36. Cost of Internal Equity

37. Cost of Internal Equity 1) Dividend Growth Model

38. D1 Po Cost of Internal Equity 1) Dividend Growth Model kc = + g

39. D1 Po Cost of Internal Equity 1) Dividend Growth Model kc = + g 2) Capital Asset Pricing Model (CAPM)

40. D1 Po b Cost of Internal Equity 1) Dividend Growth Model kc = + g 2) Capital Asset Pricing Model (CAPM) kj = krf + j (km - krf )

41. Cost of External Equity

42. Cost of External Equity Dividend Growth Model

43. D1 NPo Cost of External Equity Dividend Growth Model knc = + g

44. D1 NPo Net proceeds to the firm after flotation costs! Cost of External Equity Dividend Growth Model knc = + g

45. Weighted Cost of Capital • The weighted cost of capital is just the weighted average cost of all of the financing sources.

46. Weighted Cost of Capital Capital Source Cost Structure debt 6% 20% preferred 10% 10% common 16% 70%

47. Weighted Cost of Capital(20% debt, 10% preferred, 70% common) • Weighted cost of capital = .20 (6%) + .10 (10%) + .70 (16%) = 13.4%