q1. After graduation, you plan to work for 10 years and then visit Australia. You expect to save RM1,000 a year for the first 5 years and RM2,000 annually for the next 5 years. These savings cash flows will start in one year. In addition, your family has just given you a RM5,000 graduation gift. If your gift and all future contributions are put into an account that pays 10% compounded annually, what will your financial "stake" be when you leave for Australia 10 years from now?

a.

RM20,000

b.

RM35,101

c.

RM28,393

d.

RM31,148

e.

RM32,533

Clear my choice

Question 2

Not yet answered

Question text

Which of the following statements is CORRECT?

a.

All else equal, increasing the debt ratio will increase the ROA.

b.

A firm that has more debt will have a higher equity multiplier than those with no debt.

c.

If two firms have the same amount of sales, interest rates paid, operating costs, and assets but differed in the way how the company is being financed; the firm with a lesser debt ratio will generally have the higher expected ROE.

d.

Debt financing will tend to lower the earning power ratio, and other things held constant.

Clear my choice

Question 3

Question text

You are saving money for your first house, and you plan to make regular deposits into a brokerage account earning 12%. Your first deposit of RM5,000 will be made today. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10% a year. (That is, you plan to deposit RM5,500 at t = 1, and RM6,050 at t = 2, etc.) How much money will be in your account after five years?

a.

RM40,627.00

b.

RM44,873.90

c.

RM39,362.57

d.

RM24,697.40

e.

RM42,512.98