PT XYZ is a garment company that produces batik and other traditional clothing. The company's financial data is as follo
Posted: Sun May 29, 2022 6:37 pm
PT XYZ is a garment company that produces batik and other
traditional clothing. The company's financial data is as follows.
Earnings before interest and taxes or EBIT = Rp150.000.000
Corporate tax rate or TC = 25% Amount of debt or D = Rp600.000.000
Unlevered cost of capital or RU = 20% The cost of debt or RD = 8%
Based on these financial data, determine:
a. The value of company equity
b. The value of company cost of equity
c. The value of company WACC
d. Provide your analysis of the debt taken by the company
whether it brings an advantage or not!
traditional clothing. The company's financial data is as follows.
Earnings before interest and taxes or EBIT = Rp150.000.000
Corporate tax rate or TC = 25% Amount of debt or D = Rp600.000.000
Unlevered cost of capital or RU = 20% The cost of debt or RD = 8%
Based on these financial data, determine:
a. The value of company equity
b. The value of company cost of equity
c. The value of company WACC
d. Provide your analysis of the debt taken by the company
whether it brings an advantage or not!