Syarikat Sekuriti Juita has RM100 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power ratio (EBIT/Total Asset) was 15% and its return on assets (Net Income/ Total Assets) was 9%. What was the companys interest expense?

Select one:

a. RM 0

b. RM15,000,000

c. RM 2,000,000

d. RM 6,000,000

20.How much would you pay for a stock that is expected to make a RM1.50 dividend in one year if the expected dividend growth rate is 3% and you required a 16% return on your investment?

Select one:

a. RM12.33

b. RM11.54

c. RM12.43

d. RM13.4