QUESTION 5 (16 MARKS) a) Assume Daumen and Joshua both have bought similar quantity of quoted shares worth RM200,000 in Bursa Malaysia Joshua paid cash for the RM200,000 whereas Darren took a financing of RM100,000 at a profit rate of 12% per annum monthly rest. One month later, the share price has increased by 25%. Calculate the profit gained by Darren and Joshua (assuming no transaction cost) Value after month D Less financing Less Purchase Profit Capital Remo Investment (6 marks) Joshua b) Give the definition and ONE (1) example using the information in part A for the following i) Margin of financing (2 marks) BRR113 RETIREMENT PLANNING FIRST SEMESTER SESSION 2018/2019 MATRIC NO ii) Margin call (2 marks) c) Total interest approach and IRR approach are two approaches used to evaluate a proposal of refinancing of housing loan. Besides these two approaches, as a financial planner you must also explain the following factors to the client Loans with fixed rates or variable rates (3 marks) ii) Prepayment charges (3 marks)