ANALYSIS OF OPTIMAL CAPITAL STRUCTURE CASE STUDY OF PT PAKUWON JATI TBK

PRITA NANDA UTAMI, Prof. Dr. Jogiyanto Hartono, MBA.

2014 | Tesis | S2 Manajemen

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This research attempts to analyze the optimal capital structure of PT Pakuwon Jati Tbk as a property company in Indonesia in order to maximize the value of the company. The term of capital structure deals with the way a company finances its assets by using the combination of debt capital and equity capital. For the use of each capital, the company should pay a cost, called as cost of capital. The optimal capital structure can be achieved when the company has the capital structure with the lowest cost of capital that can maximize the value of the company (Brigham and Houston, 2010). In determining the cost of capital, this research has considered the bankruptcy risk caused by the use of debt capital that may affect the cost of debt, thereby the weighted cost of capital. By considering the bankruptcy risk which is stated by the beta of debt, the cost of debt will be different for each level of debtto- equity ratio. From the analysis, it can be concluded that the capital structure of PT Pakuwon Jati has not been in the optimal level. The current capital structure consists of 88.2% of equity and 11.8% of debt. Whereas, from the calculation, the company has a chance to maximize the value of the company by having the capital structure consisting of 60% of equity and 40% of debt.

Kata Kunci : optimal capital structure, cost of capital, Pakuwon Jati Tbk.