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QUESTION 1 (25 MARKS) a) Corus Berhad is interested to invest in bonds. Currently, the financial manager is evaluating both Bond A and Bond B.
QUESTION 1 (25 MARKS) a) Corus Berhad is interested to invest in bonds. Currently, the financial manager is evaluating both Bond A and Bond B. Bond A pays 8 percent coupon semi-annually and matures in 12 years. Bond B pays 7 percent coupon annually having a maturity period of 13 years. Determine the value of each bond if the current market yield for both bonds is 8 percent. (5 marks) Below is a partial balance sheet of WOU Berhad Common stock (RM 2) Premium Retained earnings Total Net Worth The company declared a 2 for 1 stock split. i) Calculate the new par value. (3 marks) ii) Calculate the new numbers of share outstanding. (3 marks) C) Elaborate any four (4) reasons for the company to declare stock dividend. (8 marks) b) RM40,000,000 RM25,000,000 RM20,000,000 RM85,000,000
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