PT GRAGAS this year the demand for steel has increased quite signi?cantly so that the company requires additional funds of Rp. 500,000,000. Additional funds can be obtained from several sources as follows : 1. Long Term Debt The company issues bonds amounting to 25% of the company's funding needs. Interest of IDR 6,500,000 I semiannualy, paid every January 1 and July 1. These bonds will mature in 10 years. The bonds were sold at a discount of 16% below their par value. For the issuance of these bonds, the company needs to pay an issue fee of 5% of the selling price. The applicable tax is 25%. If the use of debt has reached Rp. 600,000,000, the cost of debt before tax will be 3.8% per 3 months. . Preferred Stock The company issued 10,000 preferred shares with a par value of IDR 15,000 per share, with a dividend rate of 8% p.a. The preferred stock is planned to be sold at 9/10 of its par value, with an exclude ?otation cost of 5.5% of the selling price. . Common Stock The price of common stock is the same as the selling price of the preferred stock. It is predicted that the dividends to be distributed at the end of 2019 will be IDR 1,650. Below is historical data on the amount of dividends per share that the company has distributed over the past 4 years: Years Dividends per share 2015 2015 2017 2018 Rp 1.150 Rp 1.250 Rp 1.370 Rp 1.500 The company estimates that the retained earnings can be maintained at Rp 2,250,000,000. If the retained earnings are fully utilized, the company will issue new ordinary shares at a price that is 9.5% lower than the previous common share price. With the issuance of these new shares, there is a ?otation cost of 8% of the selling price per share. Requested: 1. Calculate the amount of each cost of capital from the various funding sources above! 2. How many break points are there? Calculate the amount of the break point! 3. Calculate the WACC for each range of ?nancing!

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