46.69 for the Financial Year Ended 30 June 2020 Group Global Industry Average (GIA) RM200 Revenue *1.152,860 100.00 (50% of total sales were on credit terms) Cost of sales (**50% of total purchases were on credit terms) Gross profit 269,449 Other income 12.478 Finance income 9,370 Gain on disposal of assets Administrative expenses (73,819) Operating profit 217,478 22.48 Finance costs (0.273) Profit before tas 216.205 21.61 Tax expenses (23.858) Profit for the financial year 192.347 19.77 The following information relates to the existing capital of the firm as at 30 June 2019: The market price of ordinary shares RM2.00 The following information relates to the existing capital of the firm as at 30 June 2020: The market price of ordinary shares RM2.69 Weighted average number of ordinary shares 3,164,975,000 units Beta of company 6.8% Yield of a 3-month Malaysian Islamic Treasury Bill (R) 1.60% Expected returns on a market portfolio (Ruil 5.02% MS Tech annual dividends for the last five (5) years: 2016 2017 Dividend per share (RM) 0.044 0.052 Year 2018 0.084 2019 0.084 2020 0.098 The average ratios for the subsector of semiconductor Ratio Global Industry Average (GIA) Current ratio 1.96 times Quick ratio 0.89 times Debt-to-equity ratio 0.08 times Interest coverage ratio 25.76 times Receivable tumover ratio 6.30 times Inventory turnover ratio (Revenue) 8.72 times Inventory turnover ratio (Cost of sales) 4.67 times Asset turnover ratio 0.53 times Return on asset 10.52% Return on investment 16.57% Return on equity 19.17% 4. a. MS Tech has the opportunity to team up with MIT Semiconductor Pte Ltd of Singapore to supply semiconductor process tools. In this three-year project called MS-MIT JV, the required investment outlay from MS Tech is RM8.56 million. The company's hurdle rate is equal to the 2020 WACC attained in the earlier question. The projected cash flows for MS Tech from Day 1 until the end of Year 3 are presented to you as below: Day 1 RM'000 (8,560) End of Year 1 RM'000 13,760.4 End of Year 2 RM'000 11,528.6 End of Year 3 RM000 10,579.5 MS-MIT JV i. ii. . Determine the Internal rate of return (IRR) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Net Present Value (NPV) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Profitability index (PI) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Payback period (PP) for the MS-MIT JV project. Show your workings. (2 marks) iii. iv. 46.69 for the Financial Year Ended 30 June 2020 Group Global Industry Average (GIA) RM200 Revenue *1.152,860 100.00 (50% of total sales were on credit terms) Cost of sales (**50% of total purchases were on credit terms) Gross profit 269,449 Other income 12.478 Finance income 9,370 Gain on disposal of assets Administrative expenses (73,819) Operating profit 217,478 22.48 Finance costs (0.273) Profit before tas 216.205 21.61 Tax expenses (23.858) Profit for the financial year 192.347 19.77 The following information relates to the existing capital of the firm as at 30 June 2019: The market price of ordinary shares RM2.00 The following information relates to the existing capital of the firm as at 30 June 2020: The market price of ordinary shares RM2.69 Weighted average number of ordinary shares 3,164,975,000 units Beta of company 6.8% Yield of a 3-month Malaysian Islamic Treasury Bill (R) 1.60% Expected returns on a market portfolio (Ruil 5.02% MS Tech annual dividends for the last five (5) years: 2016 2017 Dividend per share (RM) 0.044 0.052 Year 2018 0.084 2019 0.084 2020 0.098 The average ratios for the subsector of semiconductor Ratio Global Industry Average (GIA) Current ratio 1.96 times Quick ratio 0.89 times Debt-to-equity ratio 0.08 times Interest coverage ratio 25.76 times Receivable tumover ratio 6.30 times Inventory turnover ratio (Revenue) 8.72 times Inventory turnover ratio (Cost of sales) 4.67 times Asset turnover ratio 0.53 times Return on asset 10.52% Return on investment 16.57% Return on equity 19.17% 4. a. MS Tech has the opportunity to team up with MIT Semiconductor Pte Ltd of Singapore to supply semiconductor process tools. In this three-year project called MS-MIT JV, the required investment outlay from MS Tech is RM8.56 million. The company's hurdle rate is equal to the 2020 WACC attained in the earlier question. The projected cash flows for MS Tech from Day 1 until the end of Year 3 are presented to you as below: Day 1 RM'000 (8,560) End of Year 1 RM'000 13,760.4 End of Year 2 RM'000 11,528.6 End of Year 3 RM000 10,579.5 MS-MIT JV i. ii. . Determine the Internal rate of return (IRR) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Net Present Value (NPV) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Profitability index (PI) for the MS-MIT JV project. Show your workings. (2 marks) Determine the Payback period (PP) for the MS-MIT JV project. Show your workings. (2 marks) iii. iv