CASE 2 - APPLICATION QUESTION TOPIC: Money and Capital Market, Cost of Capital Analysis for Malaysia-Listed Companies Assignment Objective: This assignment is designed to help you develop a comprehensive understanding of the cost of capital, including the cost of debt and equity, as well as the calculation of the Weighted Average Cost of Capital (WACC), and its application in the context of Malaysian-listed companies. Instructions: Select two publicly listed companies in Malaysia from different industries. a) Discuss the key money market instruments used by the firm for short-term investments. b) Identify and justify the specific capital market investments. Provide details about the types of stocks, bonds, or other investments the companies use. c) Evaluate the company's current debt financing structure and assess its implications for their overall cost of capital. Cost of Debt and Debt Financing in Malaysia d) Calculate the cost of debt for each company. Discuss the factors that affect the cost of debt, including the yield to maturity (YTM) on their outstanding bonds. Cost of Equity and Equity Financing in Malaysia e) Determine the cost of equity for each of the selected companies using the Dividend Discount Model (DDM) or the Capital Asset Pricing Model (CAPM). Justify your choice of model. f) Discuss the risk factors that influence the cost of equity to the selected companies. g) Compare and contrast the cost of equity for the two companies and explain any variations. Weighted Average Cost of Capital (WACC) in the Malaysian Market h) Calculate the Weighted Average Cost of Capital (WACC) for each of the selected companies by combining the cost of debt and cost of equity. Explain the importance of the WACC in investment decisions. Conclusion and Recommendations Summarize the key findings of your analysis for both companies. Provide recommendations to the companies based on the calculated cost of capital and the overall financial market conditions in Malaysia.

CASE 2-APPLICATION QUESTION TOPIC: Money and Capital Market, Cost of Capital Analysis for Malaysia-Listed Companies Assignment Objective: This assignment is designed to help you develop a comprehensive understanding of the cost of capital, including the cost of debt and equity, as well as the calculation of the Weighted Average Cost of Capital (WACC), and its application in the context of Malaysian-listed companies. Instructions: Select two publicly listed companies in Malaysia from different industries. a) Discuss the key money market instruments used by the firm for short-term investments. b) Identify and justify the specific capital market investments. Provide details about the types of stocks, bonds, or other investments the companies use. c) Evaluate the company's current debt financing structure and assess its implications for their overall cost of capital. Cost of Debt and Debt Financing in Malaysia d) Calculate the cost of debt for each company. Discuss the factors that affect the cost of debt, including the yield to maturity (YTM) on their outstanding bonds. Cost of Equity and Equity Financing in Malaysia e) Determine the cost of equity for each of the selected companies using the Dividend Discount Model (DDM) or the Capital Asset Pricing Model (CAPM). Justify your choice of model. f) Discuss the risk factors that influence the cost of equity to the selected companies. g) Compare and contrast the cost of equity for the two companies and explain any variations. Weighted Average Cost of Capital (WACC) in the Malaysian Market h) Calculate the Weighted Average Cost of Capital (WACC) for each of the selected companies by combining the cost of debt and cost of equity. Explain the importance of the WACC in investment decisions. Conclusion and Recommendations Summarize the key findings of your analysis for both companies. Provide recommendations to the companies based on the calculated cost of capital and the overall financial market conditions in Malaysia