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    Soal Latihan UAS

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    Gistima Putra Javanda
    Synergy Company is considering a new $2.8 million project that would be depreciated over 5 years to zero. It would sell for $360 per unit and have variable costs of $190 per unit and fixed costs of $860,000. The required returns are (a) accounting break-even of 7,778 units, (b) cash break-even of 8,333 units, and (c) financial break-even of 8,333 units. An investor with a 60% allocation to Stock M would have an expected return of 0.21 and standard deviation of 0.168. PT RAB is considering a railroad project with a 10% expected return. Given the capital structure and

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    Soal Latihan UAS

    Uploaded by

    Gistima Putra Javanda
    13 views2 pages
    Synergy Company is considering a new $2.8 million project that would be depreciated over 5 years to zero. It would sell for $360 per unit and have variable costs of $190 per unit and fixed costs of $860,000. The required returns are (a) accounting break-even of 7,778 units, (b) cash break-even of 8,333 units, and (c) financial break-even of 8,333 units. An investor with a 60% allocation to Stock M would have an expected return of 0.21 and standard deviation of 0.168. PT RAB is considering a railroad project with a 10% expected return. Given the capital structure and

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    Synergy Company is considering a new $2.8 million project that would be depreciated over 5 years to zero. It would sell for $360 per unit and have variable costs of $190 per unit and fixed costs of $860,000. The required returns are (a) accounting break-even of 7,778 units, (b) cash break-even of 8,333 units, and (c) financial break-even of 8,333 units. An investor with a 60% allocation to Stock M would have an expected return of 0.21 and standard deviation of 0.168. PT RAB is considering a railroad project with a 10% expected return. Given the capital structure and

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views2 pages

    Soal Latihan UAS

    Uploaded by

    Gistima Putra Javanda
    Synergy Company is considering a new $2.8 million project that would be depreciated over 5 years to zero. It would sell for $360 per unit and have variable costs of $190 per unit and fixed costs of $860,000. The required returns are (a) accounting break-even of 7,778 units, (b) cash break-even of 8,333 units, and (c) financial break-even of 8,333 units. An investor with a 60% allocation to Stock M would have an expected return of 0.21 and standard deviation of 0.168. PT RAB is considering a railroad project with a 10% expected return. Given the capital structure and

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Question 1

    Synergy Company, Corp. is considering releasing new products to meet the demands of its
    customers. To produce the new product requires an initial investment cost of $2,800,000, with a
    period of 5 years, has no residual value and is depreciated using the straight-line method to zero. The
    estimated selling price is $360 / unit, variable costs are $190 / unit, and fixed costs are $860,000. The
    expected return on the project is 12%. The applicable tax rate is 35%.
    a. What is the value of accounting break-even level of output for this project?
    b. What is the value of cash break-even level of output for this project?
    c. What is the value of financial break-even level of output for this project?
    Question 2 (20%)

    State Probability Stock M Stock Y


    Boom 0.3 0.35 -0.1
    Bust 0.7 -0.05 0.3
    Based on information above if an investor invests 60% of her money in Asset M.
    a. Calculate the expected return portfolio
    b. Calculate standard deviation for the portfolio.
    Question 3

    PT RAB has been considering a railroad project with an expected return of 10%. With the
    assumption that the firm tax rate is 35%. Below is the information that related to the capital structure
    of PT RAB.

     Bonds outstanding of 10.000 bonds with coupon rate of 8% and face value of $1000 that will
    mature in 10 years. The current price is 94% of the face value and coupon is paid annually.
    (Please show your calculation using interpolation).
     Common stocks outstanding is 200.000 stocks with market price of $40 per stock. It is known
    that the risk-free investment rate is 4.0%, the systematic risk of the company is 1.01, and the
    market risk premium is 7%.
     Preferred stocks outstanding is 20.000 stocks with market price of $70/stock and fixed
    dividend of $2.5/stock
    a) Calculate the WACC of the firm
    b) Decide whether the firm should accept the project.
    Question 4
    Stark Industries Inc. has estimated sales (in millions) for the next four quarters as follows

    Q1 Q2 Q3 Q4
    Sales $150 $160 $170 $180
    Sales for the first quarter of the year after this one is projected at $180 million. Accounts receivable
    at the beginning of the year were $70 million. Stark Industries Inc. has a 45-day collection period.

    1
    Stark Industries Inc. purchases from suppliers in a quarter are equal to 50 percent of the next
    quarter’s forecasted sales, and suppliers are normally paid in 36 days. Wages, taxes, and other
    expenses run about 20 percent of sales. Interest and dividends are $12 million per quarter.
    Stark Industries Inc. plans a major capital outlay in the second quarter of $75 million. Finally, the
    company started the year with a $50 million cash balance and wishes to maintain a $30 million
    minimum balance. Assume that Stark Industries Inc. can borrow any needed funds on a short-term
    basis at a rate of 3 percent per quarter. (1 Year=360 Days).
    Prepare the Short-Term Financial Plan!

    Question 5
    PT. PQR is a manufacturing company based in Depok. Its current sales are 250 units per month,
    which are sold at Rp 40,000 per unit. PT. PQR is considering increasing sales by 100 units, if the
    company provides credit to consumers with a net credit policy of 30, changing from the current
    policy of paying cash. If the market interest rate per month is 0.5% and the variable cost per unit is
    IDR 22,000, what is the NPV for the change in credit policy?

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