SUBJECT: FINANCE MANAGEMENT

(a) Adam Food currently has 1 million shares outstanding and decided for distribution of 15 percent share dividend to their shareholders. Compute the new total number of shares outstanding after after valuation of share dividend.

(b) Calculate number of outstanding shares if the Fixcent Berhad has decided on a 4-for-1 reverse stock split. The firm currently has 2,000,000 shares outstanding.

(c) Sarangs Company just sold a bond with 10 warrants attached. The bond has a 20-year maturity, an annual coupon rate of 12 percent and RM1,000 par value. The current yield on similar straight bonds is 15 percent. Compute the value of each warrant.

(d) Mr Syed. a foreign investor would like to invest RM100,000 from his fund in the following three shares.

COMMON SHARE	BETA
tory burch	0.95
kate spade	1.20
billabong	1.80

the additional information:

treasury bills: 9%

market return: 16%

Determine the required rate of return for each of the share using Capital Asset Pricing Model (CAPM).