1.Wahed Berhad is currently on schedule to sell 200,000 units of its most popular product. The firm's average selling price per unit is RM16.00. Variable cost per unit is RM11.00. Interest expense is at RM50,000 per year, while fixed costs total RM800,000. What is the firm's break-even point in sales?

Select one:

a.RM980,000

b.RM1,720,000

c.RM2,560,000

d.RM3,240,000

2.If the IRR is greater than the required rate of return, the ________________.

Select one:

a.present value of all the cash inflows will be greater than the initial outlay.

b.payback will be less than the life of the investment.

c.discounted payback period will be less than the payback period.

d.project should be rejected.

3.A firm has sales for the year of RM92,000, costs of RM46,000 and an annual depreciation of RM40,000. If the tax rate of 26 percent, calculate the operating cash flow for the year.

Select one:

a.RM34,040

b.RM56,400

c.RM44,440

d.RM50,440

4.Jatee Berhad. has fixed costs of RM225,000. Jatee sells its product for RM45 and has a unit variable cost of RM20. What is Jatee's break-even point in units?

Select one:

a.8,750

b.9,000

c.8,500

d.9,250

5.Mamamia Berhad is considering a three-year project that has a cost of RM75,000. The project will generate after-tax cash flows of RM33,100 in Year 1, RM31,500 in Year 2, and RM31,200 in Year 3. Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%. What is the project's payback?

Select one:

a.2.33 years

b.0.33 years

c.1.22 years

d.3 years

6.Analysis of a machine indicates that it has a cost of RM6,918,210. The machine is expected to produce annuity cash inflows of RM1,825,000 for five years. What is the machine's IRR?

Select one:

a.11.80%

b.10.00%

c.12.11%

d.9.50%

7.A firm has a degree of combined or total leverage of 1.25. Price per unit is RM15 and the quantity output is equal to 200,000 units. Interest expense is RM10,000 and fixed costs are RM270,000. Calculate the variable cost per unit.

Select one:

a.RM6

b.RM8

c.RM5

d.RM7

8.Ilusi Berhad has a current market value of equity of RM32,400. Currently, the firm has excess cash of RM2,100, total assets of RM22,400, net income of RM3,210, and 800 shares of stock outstanding. The company is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?

Select one:

a.RM40.06

b.RM40.87

c.RM40.50

d.RM39.94

9.Your firm is planning to split the stock 2 for 1. The current price of the stock is RM84. Based on the equity portion of your firm's balance sheet before the stock split, the common stock par value (2 million shares outstanding at RM4 par value) is RM 8,000,000, paid-in capital is RM16,000,000, retained earnings is RM30,000,000 and the total equity is RM54,000,000. What is the number of shares outstanding and their par value per share would be once the stock split is exercised?

Select one:

a.1 million shares at RM4 par.

b.1 million shares at RM8 par

c.2 million shares at RM2 par.

d.4 million shares RM2 par.