CONFIDENTIAL SECTION C: Analytical Questions (35 marks) 1. Selected data for Hillside Company and Greenview Company is given below: Greenview Company In RM million Hillside Company Total liabilities 650 450 Shareholders' equity 300 400 Total liabilities + Shareholders' 950 850 equity Interest expense 65 45 Income before taxes 140 130 Income before taxes and interest 205 175 Required: Based on the above information, which company would likely obtain the less favourable interest rate on additional debt financing? (19 marks) 2. The following information was drawn from the annual reports of two retail companies. One company is an upscale department store while the other is a discount store. In RM H & L S & W Sales 325,000,000 680,000,000 Cost of goods sold 130,000,000 Gross profit 408,000,000 195,000,000 Rental expenses 272,000,000 20,000 Number of stores 30,000 2 10 Required: Based on the limited information, identify which company is the upscale department sto (16 ECTION D: Essay Question (20 marks) riefly explain the FOUR types of audit opinions