QUESTION 4 (25 MARKS) a) Bendang Berhad is interested to invest in bonds. Currently, the...
70.2K
Verified Solution
Link Copied!
Question
Finance
QUESTION 4 (25 MARKS)
a) Bendang Berhad is interested to invest in bonds. Currently, the financial manager is evaluating both Bond A and Bond B. Type of Bond Coupon Rate Compounding Year Bond A 7% per annum Annually 12 years Bond B 9% per annum Annually 12 years
Determine the value of each bond if the current market yield for both bonds is 8 percent. 5 marks
B) Below is a partial Statement of Financial Position of Koindu Berhad
Common stock (RM 2) RM40,000,000
Premium RM25,000,000
Retained earnings RM20,000,000
Total Net Worth RM85,000,000
The company declared a 2 for 1 stock split.
i) Calculate the new par value. (3 marks)
ii) Calculate the new numbers of share outstanding. (3 marks)
c) Elaborate any four (4) reasons for the company to declare stock dividend. (8 marks)
d) Partial Statement of Financial Position of Daim Bhd. as at 31 December 2022.
Capital Position RM
Common stock (RM2) 3,000,000
Premium 2,000,000
Retained Earnings 5,000,000
Total Net Worth 10,000,000
The current market price for Daim Berhad stock is RM10. Show the effect on the company's Statement of Financial Position if the company declares a 20 percent stock dividend.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
