Sophia is trying to value AALI.JK using residual income

method. As of 21 October 2022, the share price for AALI.JK is IDR 8,750. Exhibit

1 shows Sophia’s projection.

Exhibit 1.

Sophia’s

Before

making the projection, Sophia has already calculated the cost of equity for

AALI using the following variables :

Beta                             : 1.23

Risk-free

rate              : 4.75%

Equity

Risk Premium : 6.12%

Sophia assumes that AALI’s