(a) (b) Telekom is one of the Public Listed Companies in Malaysia. Based on this company provide examples of possible agency problem between their management and business owner. (10 marks) Discuss the THREE (3) common types of financial management decisions undertaken by every company. (9 marks) (c) A software company has invested RM10 mil into development and marketing for its latest application program, which sells for RM50 per copy. Each costs the company RM15 to sell. Sales volume reaches one million copies. Calculate the operating leverage (DOL). (6 marks) (a) Jaymee decided to operate a small shop selling local delicacies. His brother James is interested to partner with him. Advise them on the advantages and disadvantages of i) ii) sole proprietorship partnership Then justify whether Jaymee should start as a sole proprietor or partner with James. (b) Elaborate on the goal that constantly motivate the actions of a financial manager. (10 marks) CER Corporation has 8.75 million shares of common stock outstanding, 215,000 shares of RM6 annual dividend preferred stock outstanding, and 105,000 of 7.5% semi-annual bond outstanding. The common stock is currently sells for RM34 per share and has a beta of 1.25, the preferred stock currently sells for RM91 per share, and the bonds have 15 years to maturity and sell for 93% of par. The market risk premium is 8.5%, T-bills are yielding 5%, and corporate tax rate is 35%. Calculate the following: (a) Firm's market value capital structure. (b) (c) (d) (e) Cost of equity. Cost of preferred stock. Cost of debt. Weighted Average Cost of Capital (WACC). (10 marks) (3 marks) (2 marks) (8 marks) (2 marks)