VALUING AND CAPITAL STRUTURE ANALYSIS OF PT. MENARA SUMBERDAYA INDONESIA

• Main Author: MUHARAM (NIM : 19012144), BARKAH
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26031
• Institution: Institut Teknologi Bandung

Indonesia as the fourth largest country in the world has high population and domestic <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> consumption. This condition is highly beneficial for industry in Indonesia. Milk and dairy <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> product is one of them. Fortunately this industry still dominated by foreign company and <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> importer to support local demand. This condition showed that the local producers still <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> uncultivated huge opportunity in local market. PT. Menara Sumberdaya Indonesia (MSI) as <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> one of the local producers saw this condition as opportunity. However MSI need a new <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> machine to support the expansion, because the current production capacity is already at <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> maximum. Therefore MSI need external capital to fund the expansion. This study aims to <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> give recommendation with calculation about capital structure and company valuation to MSI <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> management to get funding strategy. Based on the calculation it shows MSI need to get the <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> external fund from both debt and equity financing to fund the expansion, in order to obtain <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> optimal capital structure. MSI also suggested increasing the volume of production to reduce <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> the idle capacity of the new machine. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Keywords: Valuation, discounted cash flow, acquisition, optimal capital structure