^{calculate the figures which have not been provided}

ZCMA6032 Managerial Finance Semester 1 2019/2020 Question 1 (20 marks) ABC Bhd offers a broad portfolio of best quality vegetable oil-based ingredients for application in food and non-food items. The company made large profits in recent years and set aside a large reserve for future investments. The finance director of ABC Bhd is in th process of preparing its capital budget for the forthcoming period and is examining a number of capital investment proposals that have been received from its directors. One of the project coded as project R involves installation of solar panels to its existing production factory save energy costs. The solar panels are fitted to the roof of its factory in order to reduce company's dependency on oil as an energy source. The solar panels would save energy co and have an expected life of ten years. The net cash inflow from this project is estimated RM30,000 per year. The internal rate of return of the solar panel project is 12%. below: company's consultant has estimated the portfolio beta as 1.29. The projects details are Investment Project Beta Coefficient (RM) Not provided R Not provided 240,000 S 1.2 380,500 T 0.8 460,000 U 1.5 550,000 V 1.6 a. Calculate the figures which have not been provided. Using capital asset pricing model, calculate the required return for each project. Diversification can eliminate all risks inherent in investment projects. Disc context of the above. uestion 2 (20 marks) Z Corporation issued a new series of bonds on January 1, 1996. The bonds (RM1,000), with a coupon payment of 12 percent, and mature in 30 years 2025). Coupon payments are paid semiannually (on June 30 and Decem poration has an option to call the bonds prior to its maturity. termine the Yield to Maturity (YTM) of XYZ Corporation's bonds on Jan termine the price of the bond on January 1, 2001 (5 years later), assumi interest rates had fallen to 10 percent. ermine the current yield and capital gains yield of the bond on Janua price as determined in part (b)