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Please help me to answer this question. Question 1 a) Lisa, a new executive at Baba Capital, is required to perform simple analysis of bonds

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Question 1 a) Lisa, a new executive at Baba Capital, is required to perform simple analysis of bonds in the bond market. She wants to calculate the theoretical values of the following four (4) bonds. Using the information provided below, calculate the intrinsic value of each bond and provide a short analysis from your findings. Par value for each bond is RM 1,000. Hint: the analysis should include the relationship between coupon rate, yield to maturity and bond price (discounted at par/premium) Coupon rate (%) Coupon frequency Yield to maturity Time/Year to Intrinsic maturity (n) Value/Price (PO) AA 10 Annually 10 8 BB 10 Semiannually 10 8 10 Annually 12 10 DD 12 Annually 9 15 b) Suria & Co. is entering into expansion project that may limit the carnings during the expansionary period. However, after the completion of the project in three year-time, it should allow the company to enjoy much improved growth in earnings and dividends. Last year the company paid a dividend of RM3.00 per share. It expects 2 percent growth in the next three years. In year 4 and 5, 6 percent growth is expected. In year 6 and thereafter, growth should be constant at 10 percent per year. Determine the maximum price per share that an investor who requires a return of 14 percent should pay for Suria & Co. common stock. QUESTION 2 a) Jasmine Enterprise is interested in measuring its overall cost of capital. The weighted average cost of capital (WACC) is to be measured using the following weights; 50 percent debt, 10 percent preferred stock, and 40 percent common stock. The firm is in the 30 percent tax bracket. Current investigation has gathered the following data. Debt: The firm can raise debt by selling RM 1,000-par value, 8% coupon interest rate per annum of 20-year bonds. To sell the issue, an average discount of RM30 per bond would have to be given. The firm also must pay flotation costs of RM20 per bond. Preferred stock: The firm can sell 8% preferred stock at RM95 per share. The par value of preferred stock is RM100 per share. The cost of issuing and selling the preferred stock is expected to be RM5 per share. Common stock: The firm common stock is currently selling at RM90 per share. The fim expect to pay cash dividends of RM7 per share next year. The firm's dividends have been growing at an annual rate of 6 percent, and this growth rate are expected to continue into the future. The flotation costs of issuing common stock are expected to amount to RM6 per share. (10 marks) Determine overall cost of capital for Jasmine Enterprise. c) A merger is the combination of two or more firms, in which the resulting firm maintains the identity of one of the firms, usually the larger. While Consolidation is the combination of two or more firms to form a completely new corporation. Briefly explains four (4) types of merger or consolidation activities in business. Provide an example for each type of merger. (10 marks) QUESTION 3 Swift Corp. is considering investing in the following independent projects provided the projects offer good retums to the corporation Table below details the initial outlays, the cost of capital, the desired payback period, the projects' cash flows, and the internal rate of returns for each project. Project Project Project WIRA WAJA WALA Initial Capital RM3,500,000 RM500,000 RM500,000 Cost of Capital 20.00% 10.00% 25.00% Desired Payback Period 3.00 years 6.00 years 2.00 years Internal Rate of Returns 43.70% 9.61% 52.33% Cash Flow Year 1 RM1,500,000 RM80.000 RM250,000 Cash Flow Year 2 RM2,000,000 RM80,000 RM350,000 Cash Flow Year 3 RM2,500,000 RM80,000 RM375,000 Cash Flow Year 4 RM2,750,000 RM80,000 RM425,000 Cash Flow Years RM80,000 Cash Flow Year 6 RM80.000 Cash Flow Year 7 RM80,000 Cash Flow Year 8 RM80,000 Cash Flow Year 9 Cash Flow Year 10 RM80,000 RM80,000 a) Given the above information, analyze the three (3) projects using the commonly used capital budgeting techniques; i) Payback Period, ii) Net Present valuc, and in) Internal Rate of Return. (15 marks) b) Based on your analysis, rank the projects from the most preferable to the least preferable. Determine the project(s) that is profitable and acceptable for Swift Corp. Justification your

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