Capital Structure,

Dividen policy &

Working Capital
Management
Kelompok 6
⬗ Engeline Imaculata M. ( 18REG74037)
⬗ Hafiz Ilmi P. (18REG74051)
⬗ Mardiyah (18REG74074)
⬗ Rizky Ananto Yandira (18REG74103)

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 16-6
RESIDUAL DIVIDEN MODEL
 16-6 RESIDUAL DIVIDEN MODEL

⬗ Welch Company is considering three independent project, each of which requires a $5 million investment.
The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:

Note that the projects’ costs of capital vary because the projects have different levels of risk. The company’s
optimal capital structure calls for 50% debt and 50% common equity, and it expects to have net income of
$7,287,500. If Welch establishes its dividends from residual dividend model, what will be its payout ratio?

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⬗ Step 1: Tentukan capital budget dengan memilih siapa yang memiliki return yang lebih besar
Proyek H dan L dipilih karena memiliki IRR yang lebih besar dari WACC (capital budget = $10
million)

⬗ Step 2: Menentukan persenan capital budget dengan ekuitas

Capital Budget  Equity % = Equity required.
$10,000,000  0.5 = $5,000,000.
⬗ Step 3: Menentukan dividen dari residual model
(Expected NI) $7,287,500 – $5,000,000 = $2,287,500.
⬗ Step 4: Menghitung payout ratio.
$2,287,500/$7,287,500 = 0.3139 = 31.39%.

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 16-7
DIVIDEN
 16-7 DIVIDEN
⬗ Bowles Sporting Inc. is prepared to report the following 2015 income statement (shown in thousand of
dollar).

Prior to reporting this income statement , the company wants to determine its annual dividend. The company has
500,000 shares of common stock outstanding, and its stock trades at $48 per share.
a. The company had a 40% dividend payout ratio in 2014. If Bowles wants to maintain this payout ratio in 2015,
what will be its per-share dividend in 2015?
b. If the company maintains this 40% payout ratio,what will be the current dividend yield on the company's stock?

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c. The company reported net income of $1.5 illin in 2014. Assume that the number of shares outstanding has
remained constant. What was the company’s per-share dividend in 2014?
d. As an alternative to maintaining the same dividend aout ratio, Bowles is considering maintaining the same per-
share dividend in 2015 that it paid in 2014. If it chooses this policy,that will be the company’s dividend payout
ratio in 2015?
e. Assume that the company is interested in dramatically expanding its operations and that this expansion will
require significant amounts of capital. The company would like to avoid transaction costs involved in issuing new
equity. Given this, scenario, would it make more sense for the company to maintain a constant dividend payout
ratio or to maintain the same per-share dividend? Explain.

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 a. dividend per share ditahun 2015? c. dividend per share ditahun 2014?
total dividend = Net income x Payout ratio
= $1,800,000 x 0.40 (Jika Net income 2014 adalah $1,500,000)
= $720,000
total dividend = Net income x Payout ratio
= $1,500,000 x 0.4 = $600,000
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
DPS = 𝑆ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
$720,000 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
= DPS =
500,000 𝑆ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
$600,000
= $1.44 = 500,000

b. Dividend yield dari harga saham = $1.20

perusahaan?
𝐷𝑃𝑆
Dividend yield =
𝑃0
$1.44
= = 3%
$48

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 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑠
d. Payout ratio = 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
600,000
=
1,800,000

= 0,333 = 33 1Τ3 %

e. Perusahaaan sebaiknya tetap mempertahankan dividen per saham saat ini. Hal ini dikarenakan akan membuat
dividen yang akan diberikan kepada investor tetap stabil , namun hal ini juga memungkinkan perusahaan untuk
memperluas operasi tanpa secara signifikan mempengaruhi dividen. Rasio pembayaran dividen tergantung pada
tingkat pendapatan. Jika perusahaan memperoleh pendapatan yang tinggi maka akan tinggi pula nilai dividennya.
Namun sebaliknya jika pendapatan rendah makan nilai dividen akan rendah pula. Hal ini membuat ketidakpastian
bagi investor mengenai nilai dividen yang dibagikan dan membuat harga saham perusahaan menjadi turun. Hal
tersebut dikarenakan investor lebih menyukai kebijakan pembagian dividen yang stabil.

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 9-18
BOND
VALUATION
 16-8
ALTERNATIVE
DIVIDEND POLICIES

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 16-8 ALTERNATIVE DIVIDEND POLICIES

⬗ Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $0.75 out of annual earning
per share of $2.25. Currently, Rubenstein Bros.’ stock is selling for $12.50 per share. Adhering to the
company’s target capital structure, the firm has $10 million in total invested capital, of which 40% is funded
by debt. Assume that the firm’s book value of equity equals its market value. In past years, the firm has
earned a return on equity (ROE) of 18%, which is expected to continue this year and into the foreseeable
future.
a. Based on this information, what long-run growth rate can the firm be expected to maintain?
(hint: Retention Rate x ROE.)
b. What is the stock’s required return?
c. If the firm charged its dividend policy and paid an annual dividend of $1.50 per share, financial
analysts would predict that the change in policy will have no effect on the firm new expected long-
run growth rate and required return?

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d. Suppose instead that the firm has decided to proceed with its original plan of distributing $0.75 per share to
stakeholders, but the firm intends to do so in the form of a stock dividend rather than cash dividend. The firm will
allot new shares based on the current stock price of $12.50. In other words, for every $12.50 in dividend due to
stakeholder, a share of stock will be issued. How large will the stock dividend be relative to the firm’s current
market capitalization?
e. If the plan in part d is implemented, how many new shares of stock will be issued, and by how much will the
company’s earnings per share be diluted?

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 𝐷𝑃𝑆
a. Dividen payout ratio = 𝐸𝑃𝑆
0,75
=
2,25

= 0,3333
g = ROE  Retention ratio
= (Net Income/Equity Capital)  (1 – Dividend payout ratio)
= 18%  (1 – 0.3333) = 12%.

b. rs = D1/P0 + g
= $0.75/$12.50 + 0.12
= 0.06 + 0.12
= 0.18 or 18%.

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c. Perhitungan payout ratio baru:
Perhitungan pada pertumbuhan rate :
$1.50/$2.25 = 0.6667.

Tingkat pertumbuhan jangka panjang baru sekarang dapat dihitung seperti berikut :
g = ROE × (1 – Dividend payout ratio)
= 18% × (1 – 0.6667) = 6%.
Pengembalian yang disyaratkan perusahaan adalah:
rs = D1/P0 + g
= $1.50/$12.50 + 0.06
= 0.12 + 0.06
= 0.18 or 18%

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d. Rencana awal perusahaan adalah mengeluarkan dividen sebesar $ 0,75 per saham, yang setara dengan
total dividen $ 0,75 kali jumlah saham beredar. Jadi, pertama-tama jumlah saham yang beredar harus
ditentukan dari EPS.

Amount of equity capital = Total assets × Equity ratio

= $10 million × 0.6 = $6 million.

Net income = Equity capital × ROE = $6 million × 0.18 = $1.08 million.

EPS = Net income/Number of shares

$2.25 = $1.08 million/Number of shares
Number of shares = 480,000.
Dengan 480.000 saham yang beredar, total dividen yang akan dibayarkan adalah $ 0,75 × 480.000 saham = $
360.000. Kapitalisasi pasar perusahaan saat ini adalah $ 6,0 juta, ditentukan oleh 480.000 saham pada $ 12,50 per
saham. (BV = MV per masalah.) Jika dividen saham diterapkan, itu akan menjadi 6% dari kapitalisasi pasar
perusahaan saat ini ($ 360.000 / $ 6.000.000 = 0,06).

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e. Jika plan d dilakukan, berapa banyak saham baru akan diterbitkan, dan seberapa banyak laba per saham
perusahaan akan terdilusi?
Jika jumlah total nilai yang akan didistribusikan kepada pemegang saham adalah $ 360.000, dengan harga $ 12,50 per saham,
maka jumlah saham baru yang dikeluarkan adalah:
Number of new shares = Dividend value/Price per share
= $360,000/$12.50
= 28,800 shares.
Dividen saham akan membuat laba bersih perusahaan tidak berubah; oleh karena itu, EPS baru perusahaan adalah laba bersih
dibagi dengan jumlah total saham baru yang beredar.

New EPS = Net income/(Old shares outstanding + New shares outstanding)

= $1,080,000/(480,000 + 28,800)
= $2.1226.
Pengenceran laba per saham adalah perbedaan antara EPS lama dan EPS baru.
Dilution of EPS = Old EPS – New EPS
= $2.25 – $2.1226
= $0.1274 ≈ $0.13 per share.

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THANK YOU.
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