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+ Add to QUESTION 1 Gina had just finished studying her Diploma. She plans to start a business. After consulting with family and friends, she

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+ Add to QUESTION 1 Gina had just finished studying her Diploma. She plans to start a business. After consulting with family and friends, she had an idea, but does not know what forms of business should she start with Kindly advise Gina: a) The form of business organization that she may proceed with. (2 marks) b) Provide the justification, which may include THREE (3) advantage and disadvantage each of why you suggest her that form of business. (12 marks) c) Propose to her what type of product or services that she can sell as a beginner and provide your reasoning (5 marks) d) List down any THREE (3) example of Agency Problem. (6 marks) QUESTION 2 Item Sales Cost of goods sold Depreciation Interest Dividends Current assets Net fixed assets Current liabilities Long-term debt Tax 2018 (RM) 4,203 2.422 785 180 225 2,205 7,344 1.003 3.106 35% 2019 (RM) 4,507 2,633 952 196 250 2,429 7.650 1.255 2,085 35% Data above are extraction of accounting information for Goldie Berhad. Based on the information given, answer the following question: (a) Construct an income statement for the year of 2019 (6 marks) (b) Compute Cash flow from assets (include OCF, NCS and change in NWC) for the year of 2019. (15 marks) (c) Compute Cash flow to creditors for the year of 2019 (2 marks) % Edit & Create sha QUESTION 3 Mr Sakuran borrow RM50,000 that he will repay within the period of five years. He is being charged with an interest of 6 percent per year. Based on this information, answer the following questions: (a) Prepare an amortization schedule for Mr Sakuran if he is paying an equal annual payment throughout the period. (15 marks) (b) Prepare another amortization schedule for Mr Sakuran if the bank requires his loan to be reduce by same principal amount annually. (10 marks) QUESTION 4 1) Riyad interested to invest in Selom Corporation. The company just paid a dividend of RM3.50 per share last year and maintain a constant growth rate of 6 percent. Riyad required a rate of return for his investment of 12 percent. (a) How much does the stock's worth today? (5 marks) (b) How much does the price of that worth stock five years from now? (5 marks) (c) If Riyad sell his stock at year 5, does he acquired capital gain or loss from this investitent? Justify your answer with workings. (4 marks) 2) Grandyna Berhad expects that their dividend will grow over four years time. They are expecting that the dividend will grow at 10 percent for year 1,8 percent for vear 2.11 percent for year 3 and 9 percent for year 4. Subsequently, the company initiates to maintain a constant 8.5 percent of dividend growth rate, forever. Grandina Berhad had just paid a dividend of RM2 per share last year If the required rate of return on this share is 13 percent, what is the current price of the share? (11 marks)

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