Perpustakaan Digital ITB

Based on the feasibility study, the Company requires preparing some amount of fund, which the source can be from the debt or the equity. However, the debt and equity proportion is very important for the return that the Company will gain, because it is related to the cost of the financing; Weighted Average Cost of Capital (WACC). With the WACC method, the Company will determine the best financing proportion based on the lowest WACC. Furthermore, the result of the WACC approach will be compared with the financial projection of the Company when the project will start. Instead of using one method, the Company will also use the EPS (Earnings Per Share) approach as the comparing method. EPS method is a way to determined the best financing decision for the Company with considering the greatest Earnings Per Share in every debt-equity proportion level.