1. Determine the current level of debt, ROCE in percentage.
2. Determine Net income (without leverage)
3. Determine ROCE (without leverage)
4. By considering ROCE with and without leverage, does leverage (from long-term debt) benefit your companys shareholders?
5. Compute your companys NOPAT and RNOA (use ending NOA).
6. Again, by considering ROCE and RNOA, does the use of leverage benefit your companys shareholders?
7. Compute the percentage of financial leverage (Noncurrent liabilities/Equity)
8. Compute ROCE using its disaggregation formula (RNOA +LEV + Spread)
9. Compute the actual value of favourable effect of financial leverage

- Key Alliance Group Berhad-AR2020.pdf - Adobe Acrobat Reader DC (32-bit) File Edit View Sign Window Help Home Tools Key Alliance Group ... X KAG-AR 2021.pdf Sign In 63 / 165 0 119% at 2020 RM 2019 RM 2020 RM 2019 RM Note Search 'Insert Page Export PDF 31,960,313 3,508,115 2,735,398 2,581,104 Edit PDF Non-Current Assets Property, plant and equipment Right-of-use assets Deferred tax assets Investment properties Goodwill on consolidation Investments in subsidiary companies Investment in associate company Other investments 39,831,515 7,100,591 823,531 18,200,000 3,370,300 9,000,000 H&BH8 309,599 18,351,762 5,805,412 9,000,000 12 13 14 15 16 17 18 Create PDF 7,964,598 8,764,598 Comment 7,075,436 5,406,905 6,891,240 5,228,864 Combine Files Total Non-Current Assets 76,401,373 61,833,991 29,172,340 26,501,577 El Organize Pages ~ 19 20 21 5,931,726 28,836,176 13,733,454 5,407,643 21,469,506 10,245,451 Delete, insert, extract and rotate pages. Current Assets Inventories Trade receivables Other receivables, deposits and prepayments Amount due from subsidiary companies Amount due from an associate company Tax recoverable Deposits with licensed banks Cash and bank balances 1,233, 169 43,870,092 1,295,163 50,032,113 22 23 Try now 24 24 518,317 4,163,204 3,345,900 851,935 4,035,255 3,515,755 33,235 4,101,604 160,433 22,837 3,982,255 843,625 Convert, edit and e-sign PDF forms & agreements Total Current Assets 56,528,777 45,525,545 49,398,533 56,175,993 Free 7-Day Trial Total Assets 132.930,150 107.359.536 78.570.873 82.677.570 31C Hujan Oo 1:01 PM 22/11/2021 Q 64 / 165 o 75% je ente > a Search 'Insert Page Group Company 2020 RM 2019 RM 2020 RM 2019 RM Note D. Export PDF 25 Equity Share capital Accumulated losses Other reserves 101,817,009 99,685,869 101,817,000 (56,323,201) (40,128,318) (49,309,341) 14,472,007 14,434,207 14,472,007 99,685,869 (34,266,961) 14,434,207 Edit PDF 26 66,979,735 79,853,115 Non-controlling interests 59,905,875 708,060 Po Create PDF 16 73,991,758 1,938,303 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Comment Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities Combine Files 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 El Organize Pages ~ Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,909 6,817,285 19,214,251 5,935,842 1,559,034 6,296,530 207,257 Delete, insert, extract and rotate pages. Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank Overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 30 31 32 22 24 27 28 29 1,422,498 1,909,904 Try now 1,991,116 828.976 410,552 2,869,010 267,304 623,403 823,221 Total Current Liabilities 57,404,585 29,509,738 9,235,847 1,629,755 Convert, edit and e-sign PDF forms & agreements Total Liabilities 72,256,215 31,429,475 11,591,138 2,824,455 Total Equity and Liabilities 132,930,150 107,359,536 78,570,873 82,677,570 Free 7-Day Trial Q O & 31C Hujan AO 1:02 PM 22/11/2021 Group 2020 RM 2019 RM Company 2020 2019 RM RM Note 4 324,000 324,000 Revenue Cost of sales 40,104,996 44,336,308 (32,403,970) (39,547,257) 7,701,020 4,789,049 324,000 324,000 Gross profit Other income 5 1,361,617 1,292, 143 2,430,846 6,904,814 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (12,419,951) (2,632,257) (4,110,986) (14,148,964) (3,575,624) (1,175,941) (L033)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 9 1,238,018 428,635 705,412 (17,239,971) (7,648,173) (15,042,380) 2,475,342 (17,239,971) (7,648,173) Tax Credit/(expense) (Loss)/Profit and other comprehensive (1038)/income for the year Total comprehensive (1038)/income for the year (Loss)/Profit and other comprehensive (1038)/income for the year attributable to: Owners of the Company Non-controlling interests (15,042,380) 2,475,342 (16,100,452) (1,139,519) (6,978,354) (669,819) (15,042,380) 2,475,342 10 (L033)/Profit and other comprehensive (1033)/income for the year (17,239,971) (7,848,173) (15,042,380) 2,475,342 Basic loss per share (Sen) 10 (3.06) (1.42) - Key Alliance Group Berhad-AR2020.pdf - Adobe Acrobat Reader DC (32-bit) File Edit View Sign Window Help Home Tools Key Alliance Group ... X KAG-AR 2021.pdf Sign In 63 / 165 0 119% at 2020 RM 2019 RM 2020 RM 2019 RM Note Search 'Insert Page Export PDF 31,960,313 3,508,115 2,735,398 2,581,104 Edit PDF Non-Current Assets Property, plant and equipment Right-of-use assets Deferred tax assets Investment properties Goodwill on consolidation Investments in subsidiary companies Investment in associate company Other investments 39,831,515 7,100,591 823,531 18,200,000 3,370,300 9,000,000 H&BH8 309,599 18,351,762 5,805,412 9,000,000 12 13 14 15 16 17 18 Create PDF 7,964,598 8,764,598 Comment 7,075,436 5,406,905 6,891,240 5,228,864 Combine Files Total Non-Current Assets 76,401,373 61,833,991 29,172,340 26,501,577 El Organize Pages ~ 19 20 21 5,931,726 28,836,176 13,733,454 5,407,643 21,469,506 10,245,451 Delete, insert, extract and rotate pages. Current Assets Inventories Trade receivables Other receivables, deposits and prepayments Amount due from subsidiary companies Amount due from an associate company Tax recoverable Deposits with licensed banks Cash and bank balances 1,233, 169 43,870,092 1,295,163 50,032,113 22 23 Try now 24 24 518,317 4,163,204 3,345,900 851,935 4,035,255 3,515,755 33,235 4,101,604 160,433 22,837 3,982,255 843,625 Convert, edit and e-sign PDF forms & agreements Total Current Assets 56,528,777 45,525,545 49,398,533 56,175,993 Free 7-Day Trial Total Assets 132.930,150 107.359.536 78.570.873 82.677.570 31C Hujan Oo 1:01 PM 22/11/2021 Q 64 / 165 o 75% je ente > a Search 'Insert Page Group Company 2020 RM 2019 RM 2020 RM 2019 RM Note D. Export PDF 25 Equity Share capital Accumulated losses Other reserves 101,817,009 99,685,869 101,817,000 (56,323,201) (40,128,318) (49,309,341) 14,472,007 14,434,207 14,472,007 99,685,869 (34,266,961) 14,434,207 Edit PDF 26 66,979,735 79,853,115 Non-controlling interests 59,905,875 708,060 Po Create PDF 16 73,991,758 1,938,303 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Comment Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities Combine Files 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 El Organize Pages ~ Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,909 6,817,285 19,214,251 5,935,842 1,559,034 6,296,530 207,257 Delete, insert, extract and rotate pages. Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank Overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 30 31 32 22 24 27 28 29 1,422,498 1,909,904 Try now 1,991,116 828.976 410,552 2,869,010 267,304 623,403 823,221 Total Current Liabilities 57,404,585 29,509,738 9,235,847 1,629,755 Convert, edit and e-sign PDF forms & agreements Total Liabilities 72,256,215 31,429,475 11,591,138 2,824,455 Total Equity and Liabilities 132,930,150 107,359,536 78,570,873 82,677,570 Free 7-Day Trial Q O & 31C Hujan AO 1:02 PM 22/11/2021 Group 2020 RM 2019 RM Company 2020 2019 RM RM Note 4 324,000 324,000 Revenue Cost of sales 40,104,996 44,336,308 (32,403,970) (39,547,257) 7,701,020 4,789,049 324,000 324,000 Gross profit Other income 5 1,361,617 1,292, 143 2,430,846 6,904,814 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (12,419,951) (2,632,257) (4,110,986) (14,148,964) (3,575,624) (1,175,941) (L033)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 9 1,238,018 428,635 705,412 (17,239,971) (7,648,173) (15,042,380) 2,475,342 (17,239,971) (7,648,173) Tax Credit/(expense) (Loss)/Profit and other comprehensive (1038)/income for the year Total comprehensive (1038)/income for the year (Loss)/Profit and other comprehensive (1038)/income for the year attributable to: Owners of the Company Non-controlling interests (15,042,380) 2,475,342 (16,100,452) (1,139,519) (6,978,354) (669,819) (15,042,380) 2,475,342 10 (L033)/Profit and other comprehensive (1033)/income for the year (17,239,971) (7,848,173) (15,042,380) 2,475,342 Basic loss per share (Sen) 10 (3.06) (1.42)