Known data of long-term liabilities and own capital owned by PT Berdikari as follows: ...

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Finance

  1. Known data of long-term liabilities and own capital owned by PT Berdikari as follows:

description

sum

Bonds (10%)

Common stock @ Rp 10,000

Retained earnings for the previous year

Rp 150 million

Rp 500 million

Rp 50 million

Next year the company plans to open a new marketing area to increase EBIT to Rp 250 million. Therefore, the company needs funds for investment in machinery and equipment amounting to Rp 100 million. There are two alternative sources of financing offered to meet the needs of these funds, namely:

  1. A total of 60% is sourced from banks in the long term with an interest rate of 15% per an average year, the rest is sourced from the emission of ordinary shares at a net price of Rp 12,500 per share
  2. A total of 60% is sourced from the issuance of ordinary shares at a net price of Rp 12,500 per share, the rest is sourced by banks in the long term with an interest rate of 15% per an average annual

With an alternative earning per share (EPS) approach which financing source is chosen if the 20% tax is assumed.

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