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helpQUESTION 1 a ) Soleman Ltd has RM 1 5 0 million in sales. The company expects that its sales will increase 1 0 percent

helpQUESTION 1
a) Soleman Ltd has RM150 million in sales. The company expects that its sales will
increase 10 percent this year. Soleman's financial manager uses a simple inear ?()
regression to forecast the company's inventory level for a given level of projected sales.
Based on historical data, the estimated relationship between inventories and sales (in
millions of RM) is expressed as:
Inventories =$15.00+0.12(Sales)
i. Given the predictive model above, compute the company's year-end.
inventory
ii. Explain how big data analytics can help improve a firm's value.
b) You own 20 percent of Tea-Corp shares, which recently sold for RM8.60 before a
planned 1 for 4 bonus issues announcements. Before the bonus issue, there are
800,000 paid-up shares.
i. What is your financial position before the issue, and what will it be after the
issue? (Assume the share price falls proportionately).
c) Suppose you own 5 percent of SEACORP ordinary shares, which most recently
sold for RM98 prior to a planned two-for-one share split announcement. Before
the split, there are 50,000 ordinary shares. Relative to now, what will be your
financial position after the share split?
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