Pertemuan 5

10 Oktober 2012

FINANCIAL LEVERAGE

Capital Structure• Manajer akan mencari capital structure yang

memaksimalkan value lebih besar bagishareholder

• Manajer akan mencari capital structure yangmeminimalkan WACC– Memaksimalkan value perusahaan

• Financial Leverage sejauh manaperusahaan menggunakan utang/obligasiuntuk pembiayaan

Efek dariFinancialLeverage

Homemade Leverage• Apakah capital structure menjadi sesuatu yang

penting?

Modigliani&Miller (M&M) 1• Bagaimana pun bentuk capital structure, firm

value sama

Modigliani&Miller (M&M) 2• Cost of Equity memiliki fungsi linear dengan

capital structure

Semakin banyak perusahaanmemiliki debt. Semakinbesar required return equity

Adanya financial risk

M&M 1 with corporate tax• Firm value meningkat linear dengan capital

structure

M&M 2 with corporate tax

WACCsemakin kecilapabilacapitalstructuremeningkat

Financial Distress• It is expensive to go bankrupt• Direct Bankruptcy Cost

– Legal, accountant, lawyer, administrativeexpenses, consultant etc

• Indirect Bankruptcy Cost– Cost of avoiding a bankruptcy filing– Loss of confidence from supplier, consumer

loss on sales

Optimal Capital Structure

At very highdebt levels,possibility offinancialdistress ischronic

Optimal Capital Structure and Cost ofCapital

Pecking Order Theory• Firm prefer to use internal financing whenever

possible• As insider, we know our stock is undervalued• Internal financing first, issue debt if necessary

and sold equity as last resort• Implication:

– No target capital structure– Profitable firms use less debt– Companies will want financial slack