QUESTION 1

(a) Explain the extent of the application of the English common law and the rules of equity as applied in Malaysia today.

b) In relation to the law of contract:

(i) Explain the meaning of the terms 'intention to create legal relations between the parties"

c) Such intention is normally implied or presumed from the nature of the agreement.

(ii) Explain the implication of the element of "certainty" to a contract.

d) Briefly explain 'damages' as one of the important remedies available for breach of contract.

e) In sale of goods, the general rule is that, no one can give a better title than he has himself:

(i) Explain the general rule above;

QUESTION 2

1.The national company responsible for the company where I work has recently published a document stating that levered beta of the sector of energy of transportation is 0.471870073(yes , 9 decimals).They obtain this number by considering the betas in the sector ,ranging -0.24 and 1.16.what is the point of being so precise with the betas ?does it make any sense to apply the same beta to all companies in a sector?

2.What is the Capital Cash Flow? Is it the same with Free Cash Flow?

3.Are there any consequences between the main authors in finance regarding the market risk premium?

4.How can we calculate companies cost of capital in emerging nations, especially when there is no state bond which we could take as a reference?

5.How can an industrial company inflate the value of its inventory so as to reduce net income and the taxes it has to pay that year?

6.According to the valuation method based on tax shields, the value of the company (vI) is the value of the unleveraged company (Vu) plus the value of the tax shields (VTS). So does the value of the company increase if I a call my bank and tell them to charge me double the interest?