You have been appointed as the investment manager at the Head Slide Bhd, a public...
90.2K
Verified Solution
Link Copied!
Question
Accounting
You have been appointed as the investment manager at the Head Slide Bhd, a public listed company on Bursa Malaysia security market. The company was listed five years ago. Now, the board of directors planning for next wave of growth. You have to make an important finance decision before move on to investment decision. The company is preparing following activities for additional fund requirement.
The company has 2 million shares outstanding.
Market value of debt is RM4 million
FCFF is currently RM1.5 million
Equity beta is 0.90, the equity risk premium is 6% and the risk-free rate is 4%.
The before-tax cost of debt is 6%.
The tax rate is 30%.
Head Slide Bhd is financed with 25% of debt.
FCFF growth rate is 4%.
4) Determine the value per share. (10 Marks)
Note: Kindly Answer worth 10 marks or do not answer. Thank You
You have been appointed as the investment manager at the Head Slide Bhd, a public listed company on Bursa Malaysia security market. The company was listed five years ago. Now, the board of directors planning for next wave of growth. You have to make an important finance decision before move on to investment decision. The company is preparing following activities for additional fund requirement.
The company has 2 million shares outstanding.
Market value of debt is RM4 million
FCFF is currently RM1.5 million
Equity beta is 0.90, the equity risk premium is 6% and the risk-free rate is 4%.
The before-tax cost of debt is 6%.
The tax rate is 30%.
Head Slide Bhd is financed with 25% of debt.
FCFF growth rate is 4%.
4) Determine the value per share. (10 Marks)
Note: Kindly Answer worth 10 marks or do not answer. Thank You
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.