QUESTION $1(25$ MARKS$)$

Relate each of the following events with one appropriate principle of finance and

supported by your justification.

a$)$ Warren Buffett, a legendary investment specialist, who is known for holding onto

his S&P $500$ stocks forever; had sold off $5\mathrm{.}4$ million shares, valued at US$$620$

million as of June $30,2023.$

$(5$ marks$)$

b$)$ Average EBIT margins of main container carriers dropped from the historic peak

at $57\%$ achieved in the first quarter of $2022$ to $8\mathrm{.}9\%$ in the second quarter of

$2023.$

$(5$ marks$)$

c$)$ In Oct $2023,$ The Edge Malaysia editor$-$in$-$chief Kathy Fong has urged all

Malaysians never too early to start saving for retirement.

$(5$ marks$)$

d$)$ The financial controller has rejected a RM$20$ million investment project that can

increase the company$$s current profit of RM$18$ million to RM$23$ million after one

year, RM$28$ million after two years and RM$22$ million after three years.

$(5$ marks$)$

e$)$ On $23$ April $2023,$ The Washington Post had reprimanded the regulator for

allowing bank executives to pocket huge bonuses amid bank failures.

$(5$ marks$)$