Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 4 (25 marks) a) bendang berhad is interes

QUESTION 4 (25 MARKS) a) Bendang Berhad is interested to invest in bonds. Currently, the...

60.1K

Verified Solution

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!
Become a Member

Other questions asked by students