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Sitis Store is reviewing its financial condition. Sales are RM16 million, variable costs is RM8,000,000 and fixed costs is RM4,000,000.Interest...
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1.Sitis Store is reviewing its financial condition. Sales are RM16

million, variable costs is RM8,000,000 and fixed costs is RM4,000,000. Interest expense is RM1,500,000. The net profit after tax is RM1,250,000. What is the degree of combined leverage?
Select one:
a. 1.06
b. 6.40
c. 5.33
d. 3.20


2.A firm has sales for the year of RM92,000, costs of RM46,000 and an annual depreciation of RM40,000. If the tax rate of 26 percent, calculate the operating cash flow for the year.
Select one:
a. RM50,440
b. RM44,440
c. RM56,400
d. RM34,040


3.Analysis of a machine indicates that it has a cost of RM6,918,210. The machine is expected to produce annuity cash inflows of RM1,825,000 for five years. What is the IRR of the machine?
Select one:
a. 10.00%
b. 12.11%
c. 11.80%
d. 9.50%


4.GEQ Enterprise is considering a new project. The project will require the purchase of an equipment at the price of RM300,000, and RM100,000 for additional investment in net working capital. The equipment has an 8-year life and will be depreciated straight-line to a zero book value. At the end of the project life, the equipment is expected to be sold at RM50,000. The project is expected to generate annual sales of RM445,000 and reduction in annual maintenance costs of RM130,000. The tax rate is 25 percent and the required rate of return is 10 percent. What is the terminal cash flow of this project?
Select one:
a. RM440,625
b. RM337,500
c. RM400,000
d. RM137,500


5.GEQ Enterprise is considering a new project. The project will require the purchase of an equipment at the price of RM300,000, and RM100,000 for additional investment in net working capital. The equipment has an 8-year life and will be depreciated straight-line to a zero book value. At the end of the project life, the equipment is expected to be sold at RM50,000. The project is expected to generate annual sales of RM445,000 and reduction in annual maintenance costs of RM130,000. The tax rate is 25 percent and the required rate of return is 10 percent. What is the initial cost of this project?
Select one:
a. RM440,625
b. RM400,000
c. RM337,500
d. RM137,500


6.Wahed Berhad is currently on schedule to sell 200,000 units of its most popular product. The average selling price per unit is RM16.00. Variable cost per unit is RM11.00. Interest expense is at RM50,000 per year, while fixed costs total RM800,000. What is the break even point in sales?
Select one:
a. RM1,720,000
b. RM3,240,000
c. RM2,560,000
d. RM980,000


7.Seroja Mills is reviewing its financial condition. Sales are RM18 million from which the firm generated an operating profit of RM5,220,000 and a net profit after tax of RM2,622,000. If the interest expense is RM850,000, what is the degree of financial leverage?
Select one:
a. 1.19
b. 1.34
c. 1.66
d. 1.81


8.Your firm is planning to split the stock 2 for 1. The market price for the stock has been RM84. Based on the equity portion of your firms balance sheet before the stock split, the common stock par value which is 2 million shares outstanding and RM4 par value is RM 8,000,000, paid in capital is RM16,000,000, retained earnings is RM30,000,000 and the total equity is RM54,000,000. What is the number of shares outstanding and their par value per share would be once the stock split is exercised?
Select one:
A. 4 million and par value of RM2
B. 2 million and par value of RM2
C. 1 million and par value of RM8. 
D. 1 million and par value of RM4.


9.Galaksi Berhad is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Galaksi would have 178,500 shares of stock outstanding. Under Plan II, there would be 71,400 shares of stock outstanding and RM1.79 million in debt outstanding. The interest rate on the debt is 10 percent and there are no taxes. Calculate the EBIT-EPS indifference point?
Select one:
a. RM333,333.33
b. RM351,111.11
c. RM298,333.33
d. RM287,878.78


10.What is the NPV for the following project if its cost of capital is 15 percent and its initial after-tax cost is RM5,000,000 and it is expected to provide after-tax operating cash inflows of RM1,800,000 in year 1, RM1,900,000 in year 2, RM1,700,000 in year 3 and RM1,300,000 in year 4?
Select one:
a. RM1,700,000
b. (RM120,800)
c. (RM137,053)
d. RM371,764

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