As an assistant financial manager for Taring Jitu Sdn Bhd$,$ you are required to measure the firm$$s cash conversion cycle, operating cycle, production cycle, collection cycle, and payment cycle on one of your manufacturing products. The Board of Director will rely on your result to help them to make a decision. Below is the necessary information for the most recent fiscal year prepared by your accountant and puts together into table: QUESTION $2(10$ MARKS$)$

Makmur Sdn Bhd has made a profit of RM$5,000,000\mathrm{.}00$ in a

year of $2022.$ Company had issued $6$ years bond with coupon

rate $8\%$ and par value as at RM$1,000$ with the market price

RM$800.$ Capital structure of the company includes $40\%$ debt,

$30\%$ preferred shares, $20\%$ common shares and $10\%$ from

retained earnings. The corporate tax rate is $35\%.$ The company

wishes to venture into a new project and decided to use debt,

preferred shares and common shares as sources of financing and

still maintaining its current capital structure ratio. Stated that

common share is RM$19$ where dividend is expected to grow at

constant rate of $5\%$ and flotation costs on its new common

shares are RM$3$ per share. Company paid the dividend of

RM$5\mathrm{.}00$ on each of its common shares outstanding at the end of

year.

The company can issue RM$9$ dividend preferred shares at a

market price of RM$20$ per share and flotation cost of RM$2$ per

share.

Required: $-$

a$.$ Based on the following information, calculate the weighted

average cost of capital $($WACC$)$ of the company for taking

the new project.

b$.$ From above answer in $($a$.),$ explain how it can influence the

company decision.

Cash sales$$RM $650,000$

$$Credit sales$$RM $970,000$

$$Total sales$$RM $1,620,000$

$$Cost of goods sold$$RM $1,010,000$

$$

Ending Balance$$ Beginning Balance

$$Accounts receivable$$ RM $52,000$ RM $48,000$

$$Inventory$$ RM$22,500$ RM $18,800$

$$Accounts payable$$ RM$21,000$ RM $17,100$

By using above data, measure the cash conversion cycle.