1. Ecology Bhd. will pay a dividend of RM3.00 per share in the next 12 months (D1). The required rate of return (ke) is 10% and the constant growth rate is 5%. Compute Price of common stock.

Select one:

a. RM70.00

b. RM42.86

c. RM100.00

d. RM60.00

2. Bill borrowed RM100,000 today that he must repay in 10 annual end-of-year installments of RM14,902. What annual interest rate is Bill paying on his loan?

Select one:

a. 4.9%

b. 7.5%

c. 8.0%

d. 5.4%

2. What is the future value of RM2,000 after 3 years if the interest rate is 8%, compounded semiannually?

Select one:

a. RM2,781.45

b. RM2,854.13

c. RM2,324.89

d. RM2,530.6

4. Syarikat Dunggon has 100,000 unit of common stock outstanding, its net income is RM750,000, and its P/E ratio is 8. What is the companys stock price?

Select one:

a. RM30.00

b. RM60.00

c. RM20.00

d. RM40.00

5. Data Sistem Berhad is considering a new product. Total assets to support expansion cost is RM500,000. It is estimated that Data Sistem Berhad can generate RM1,200,000 for annual sales with a 6% profit margin. What is the net income? Select one:

a. RM102,000

b. RM30,000

c. RM72,000

d. RM1,200,000