Questions
You have been appointed as the Finance Manager of Shangpuri Hotel Bhd. As a finance manager,...

You have been appointed as the Finance Manager of Shangpuri Hotel Bhd. As a finance manager, you are evaluating Project PJ10B, an investment project, and TWO (2) other additional projects namely Project Bee and Project Cee. You are required to deliver a comprehensive report explaining the application of numerous financial practices for valuing investment projects for the board of directors’ strategic decision. Your finance department has forecasted cash flows to assess the viability of Project PJ10B, Project Bee, and Project Cee incorporating risk into the calculations.
Additional information:
1. Current dividend for Shangpuri Hotel Bhd’s ordinary stock is RM2.50 and dividend growth rate is 6%.
2. Shangpuri Hotel Bhd is planning to issue new ordinary stock at RM50 with a flotation cost of 9%.
3. The company’s bond is paying a 6% coupon payment. Corporate tax stood at 30%.
4. Shangri Hotel Bhd’s capital structure comprising of 40% debt and 60% common stock.
Information related to Project PJ10B
The cost of this investment is RM1,200,000.
The investment is estimated to effectively contribute for 3 years. Ignore the residual value.
Depreciation for the Project PJ10B is subject to a straight-line method.
Further, yearly cash inflow is estimated at $900,000 and cash outflow RM400,000 per year. Cash inflow and outflow in entitle for tax benefit.
Finance department estimates discount factor at 7.0%.
Information related to Project Bee
1. Cost of this investment is RM120,000
2. Finance department estimates discount factor at 8.0%.
3. Ignore tax and depreciation.
Economy
Probability
Cash Flow
Good
0.30
RM20,000.00
Normal
0.50
RM30,000.00
Bad
0.20
RM40,000.00
Information related to Project Cee
1. Cost of this investment is RM120,000
2. Finance department estimates discount factor at 8.0%.
3. Ignore tax and depreciation.
Economy
Probability
Cash Flow
Good
0.30
RM50,000.00
Normal
0.50
RM30,000.00
Bad
0.20
RM20,000.00
Required:
QUESTION 1
a. Calculate the cost of new ordinary stock for Shangpuri Hotel Bhd. The current dividend for ordinary stock is $2.50 and the dividend is expected to grow at 6%.
b. Explain THREE (3) advantages and THREE (3) disadvantages of equity financing.
c. Calculate cost of debt for Shangpuri Hotel Bhd
d. Explain THREE (3) advantage and THREE (3) disadvantages of debt financing.
e. Calculate the weighted average cost of capital for the company
f. Explain FIVE (5) uses of WACC.

In: Finance

Fit y= Ax2 to the following data: (0.5, 0.7), (1, 3.4), (1.5, 7.2), (2, 12.4), (2.5,...

Fit y= Ax2 to the following data: (0.5, 0.7), (1, 3.4), (1.5, 7.2), (2, 12.4), (2.5, 20.1)

In: Statistics and Probability

I wonder how is the FORMULA TO CALCULATE % change in sales, Projected total assets, and...

I wonder how is the FORMULA TO CALCULATE % change in sales, Projected total assets, and Projected Current Liabilities!

I know the answer but I do not know where does the answer comes from. I NEED A FORMULA. NOT JUST A NUMBER

Here is the question and answer :

XYZ has the following financial information for 2018:

  • Sales = $2M, Net Inc. = $0.4M, Div. = $0.1M
  • C.A. = $0.4M, F.A. = $3.6M

C.L. = $0.2M, LTD = $1M, C.S. = $2M, R.E. = $0.8M

If 2019 sales are projected to be $2.4M, what is the amount of external financing needed, assuming XYZ is operating at full capacity, and profit margin and payout ratio remain constant?

Projected total assets                             = 4 X (1+0.2) = 4.8

Projected Current Liabilities                      = 0.2 X (1+0.2) = 0.24

% change in sales                                = 2.4-2/ 2  = 0.2

In: Finance

Calculate the margin of error and construct a confidence interval for the population proportion using the...

Calculate the margin of error and construct a confidence interval for the population proportion using the normal approximation to the  p̂  p̂ -distribution (if it is appropriate to do so).

Standard Normal Distribution Table

a.  p̂ =0.9, n=160,  α =0.2 p̂ =0.9, n=160,  α =0.2

E=E=

Round to four decimal places

Enter 0 if normal approximation cannot be used

  < p <  < p <  

Round to four decimal places

Enter 0 if normal approximation cannot be used

b.  p̂ =0.45, n=140,  α =0.2 p̂ =0.45, n=140,  α =0.2

E=E=

Round to four decimal places

Enter 0 if normal approximation cannot be used

  < p <  < p <  

Round to four decimal places

Enter 0 if normal approximation cannot be used

Please provide correct answer. thanks.

In: Statistics and Probability

1. What are the age hardening alloy systems in Al-based alloys based on classification of major...

1. What are the age hardening alloy systems in Al-based alloys based on classification of major alloyingsystems for Al-based alloys?

2.In alloy system of Al - 4.4%Cu - 0.8%Si - 0.8%Mn - 0.5%Mg which is commonly used for aircraft structures, sketch and explain all transformation stages during age hardening. What is the driving mechanism for each step?

In: Mechanical Engineering

In which society/societies does the balance of power between men and women shift to men? Select...

In which society/societies does the balance of power between men and women shift to men? Select one:

A. Hunting and Gathering B. Industrial C. Postindustrial D. Horticultural and Agricultural

Which of the following family names is a member of the lower-upper class or the "nouveau riche"? Select one:

A. Bill and Melinda Gates, who founded Microsoft B. the DuPont family, who arrived in America in the 18th century C. the Carnegie family, who built America's steel empire D. the Rockefeller family, who became the oil barons of the 19th century

When it comes to race relations this is an important principle to understand: Select one:

A. People act on perceptions and beliefs, not facts. B. There are only four pure races. C. Interracial marriage, the superior race gets inferior traits. D. Race is one of the most important reasons that people do what they do.

Policies set by the federal government largely determined the fate of ______. These policies evolved through several stages which includes separation, extermination, and forced assimilation. Select one:

A. Native Americans B. Mexican Americans C. Japanese Americans D. African Americans

According to this perspective, children must first learn the meaning of "girl" and "boy" and then place themselves in the appropriate category. Select one:

A. Gender equity B. Symbolic Interactionist C. Conflict D. Functionalist

Within a _____ system, a fixed social position is determined at birth; within a _____ system, a person's social position can change over time. Select one:

A. Caste; Class B. Party; Status C. Educational; Income D. Class; Caste

_____ are one of the most disadvantaged groups in the United States. Anywhere from 50 to 80 percent are unemployed and their suicide rate is twice the national average. Select one:

A. African Americans B. Cuban Americans C. Puerto Rican Americans D. Native Americans

According to this ideology, all causes of inequality are related to each other. Thus, the inequality women experience because of their gender may be reinforced by their social class or race. Select one:

a. libertarian b. gender equity c. women's movement d. inclusive feminism

In the winter of 1838-1839, the U.S. Army rounded up 15,000 Cherokees and forced them to walk 1,000 miles from the Carolinas and Georgia to Oklahoma. This event is called: Select one:

A. Trail of Tears B. Native Assimilation C. The Cherokee Roundup D. The Warning Shot

According to this view, the inequality that women experience because of their gender may be reinforced by their social class and racial characteristics. Select one:

A. Inclusive feminism B. Glass ceiling C. Gender equality D. Feminism

In: Economics

Case Study Forecasting Attendance at SWU Football Games Southwestern University (SWU), a large state college in...

Case Study Forecasting Attendance at SWU Football Games

Southwestern University (SWU), a large state college in Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth metroplex, enrolls close to 20,000 students. In a typical town–gown relationship, the school is a dominant force in the small city, with more students during fall and spring than permanent residents.

A longtime football powerhouse, SWU is a member of the Big Eleven conference and is usually in the top 20 in college football rankings. To bolster its chances of reaching the elusive and long-desired number-one ranking, in 2008 SWU hired the legendary Billy Bob Taylor as its head coach. Although the number-one ranking remained out of reach, attendance at the five Saturday home games each year increased. Prior to Taylor’s arrival, attendance generally averaged 25,000 to 29,000 per game. Season ticket sales bumped up by 10,000 just with the announcement of the new coach’s arrival. Stephenville and SWU were ready to move to the big time!

The immediate issue facing SWU, however, was not NCAA ranking. It was capacity. The existing SWU stadium, built in 1953, has seating for 54,000 fans. The following table indicates attendance at each game for the past 6 years.

One of Taylor’s demands upon joining SWU had been a stadium expansion, or possibly even a new stadium. With attendance increasing, SWU administrators began to face the issue head-on. Taylor had wanted dormitories solely for his athletes in the stadium as an additional feature of any expansion.

SWU’s president, Dr. Marty Starr, decided it was time for his vice president of development to forecast when the existing stadium would “max out.” He also sought a revenue projection, assuming an average ticket price of $20 in 2014 and a 5% increase each year in future prices.

Discussion Questions

  1. Develop a forecasting model, justify its selection over other techniques, and project attendance through 2015.

  2. What revenues are to be expected in 2014 and 2015?

  3. Discuss the school’s options.

Southwestern University Football Game Attendance, 2008–2013

2008 2009 2010 GAME ATTENDEES OPPONENT ATTENDEES OPPONENT ATTENDEES OPPONENT aHomecoming games. bDuring the fourth week of each season, Stephenville hosted a hugely popular southwestern crafts festival. This event brought tens of thousands of tourists to the town, especially on weekends, and had an obvious negative impact on game attendance. Source: J. Heizer and B. Render, Operations Management, 11th ed., © 2014. Reprinted and electronically reprod

In: Accounting

"Vehicles are prohibited on the paths in the park" is used as an example of a...

"Vehicles are prohibited on the paths in the park" is used as an example of a law that might require clarification.

Decide whether the law should be interpreted to forbid motorcycles, bicycles, children's pedal cars, and battery-powered remote-control cars. On what grounds are you deciding each of these cases?

In: Operations Management

An person has applied for positions at Company A, Company B and Company C. The probability...

An person has applied for positions at Company A, Company B and Company C. The probability of obtaining an offer from Company A is 0.3, from Company B is 0.6 and from Company C is 0.8. Assume that the three job offers are independent.

A)What is the probability that the person will receive a job offer from ALL three companies?

B)What is the probability that the person will receive a job offer from Company A only ?

C)What is the probability that the person will receive job offer from Company B only ?

D)What is the probability that the person will receive job offer from Company C only ?

E)What is the probability that the person will receive a job offer from exact one company (either A, B or C)?

F)What is the probability that the person will receive a job offers from Company A and B but not C?

G)What is the probability that the person will receive a job offers from Company A and C but not B?

H)What is the probability that the person will receive a job offers from Company B and C but not A?

I)What is the probability that the person will receive a job offers from exactly two companies?

K)What is the probability that the person will not receive any job offers?

L)What is the probability that the person will receive at least one job offer (i.e. either 1 or more)?

(PLZ ANSWER ASAP)

In: Statistics and Probability

A Cessna 172 has the following characteristics: Wingspan: 36’ 1” Wing Area: 174 ft2 Normal Gross...

A Cessna 172 has the following characteristics: Wingspan: 36’ 1” Wing Area: 174 ft2 Normal Gross Weight: 2,450 lb Fuel Capacity: 54 gal of aviation gasoline Power Plant: 1 × Lycoming IO–360–L2A piston engine, 180 hp Specific Fuel Consumption: 0.3 lb/hp-h Parasite drag coefficient: CD,0 = 0.037 Oswald efficiency factor: e = 0.72 Propeller efficiency: 0.8 #Passengers: 3 (+1 pilot)

(a) Produce a plot showing the power required vs. velocity of the aircraft. Label the axes clearly. [Use Excel or a programming language of your choice]

(b) Produce a plot showing the L/D ratio vs. velocity. Label the axes clearly. [Use Excel or a programming language of your choice]

(c) What is the maximum velocity at sea level?

(d) What is the minimum flight velocity at sea level?

(e) What is the maximum velocity at 5,000 ft?

(f) What is the maximum rate of climb?

(g) What is the service ceiling?

(h) How long does it take to get to the service ceiling?

(i) If you run out of fuel at an altitude of 5,000 ft, how far can the plane glide?

(j) What is the maximum range?

(k) What is the range at maximum velocity?

(l) What is the maximum endurance?

(m) What distance is required for takeoff?

(n) What distance is required for landing?

In: Mechanical Engineering