Reca berhad currently has rm200,000 debt outstanding carrying a coupon rate of 5% .it's earnings before interest and taxes (EBIT) rm200,000 and it is a zero growth company. the company's cost of equity is 10% and it's tax rate is 28%. the company has 20000 shares of common stock outstanding .the dividend payout ratio is 100 %. Reca berhad is considering recalling the 5% debt by issuing r m 400000 new 6% debt. the new funds would be used to replace the old debt and to repurchase stock at the existing price. it is estimated that the increased riskiness resulting from the leverage increase would cause the required rate of return on equity to increase to 10.5% . calculator current stock price and what would be the expected year end stock price it's the company proceeded with the recapitalization. Should reca berhad proceed with the recapitalization?

Reca berhad sales for December 2019 is rm 600000 and projected sales for the first quarter of 2020 is rm800,000 per month .80% of sales are collected in the month of the sale 15% are collected in the month following the sale and 5% of written off as uncollectible. Cost of goods sold is 40% of sale. purchases are made the month prior to the sales and are paid during the month the purchases are made (exp: goods sold in july arebought and paid for in june.)Total other cash expenses are RM 60000per month. the company cash balance as of 1st January 2020 will be rm500,000. excess cash will be used to retire you short term borrowing( if any). Reca berhad has no short term borrowing as of 31 December 2019. assume that the interest rate on short-term borrowing is 1% per month. the company must have a minimum cash balance of rm50,000 at the beginning of each month. round all answers to the nearest rm100. based on the information given prepare reca berhads cash budget for the first quarter of 2020. discuss two steps the management of a company should you do if they are facing a shot them deficit.