Financial Management Assignment, UiTM, Malaysia MKM Resources Berhad requires RM500,000 to support the working capital requirements for the next 9 months
| University | Universiti Teknologi MARA (UiTM) |
| Subject | Financial Management |
QUESTION 1
- MKM Resources Berhad requires RM500,000 to support the working capital requirements for the next 9 months. There are several alternatives for financing them as below:
i) Borrow from WVE Bank and pays an annual interest rate of 9 percent on a discounted basis. The bank requires a 10 percent compensating balance. A company currently maintains a demand deposit of RM30,000 in the bank.
ii) Issue commercial paper at an interest rate of 10 percent per annum. The dealer placement fee is RM2,000 per paper and the par value of these commercial paper are RM25,000 each.
Calculate the effective costs of the above alternatives.
- MKM Bhd is currently faced with capital rationing, the company thinks that the profitability index (PI) can be used to select the best projects. Provide your explanation on why doesn’t choosing the projects with the highest P1 always leads to the best decision.
QUESTION 2
- Assume that sales and cost of goods sold for the year 2018 were 10% below 2019 levels. Average account receivables collection days for 2019 are higher or lower than 2018 by?
- The cash flow, payback period, and NPVs for Projects A through F are given below. For all of the projects, the required rate of return is 10 percent.
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
Looking for the best thesis writer to help you with your final year project? Look no further than Assignmenthelper.my! Our team of expert writers have years of experience in crafting outstanding theses that have helped students achieve academic success. With their dedication and commitment to excellence,we're here to help. With proficiency in Algorithms and Data Structures, we're your partner for success. So why wait? Let our assignment writing experts help you write the best thesis of your life today!
Answer
Recent Solved Questions
- AINT003-4-C: You are required to develop a website with an appropriate web development tool: Web Design And Technology, Individual Assignment, APU, Malaysia
- MPU3192: Falsafah Dan Isu Semasa 2 Assignment, OUM, Malaysia Kongsikan pandangan anda kebanjiran konsert artis dari luar negara dan dalam negara di Malaysia pada tahun 2023
- BDA101: Two datasets about games on the Steam platform have been provided to you on the LMS: Analytics for Decision Making Assignment, HU, Malaysia
- STA60104 QUANTITATIVE METHODS FOR BUSINESS
- Introduction to Fintech Assignment, APU, Malaysia Revolute is a British financial technology company that offers banking services Headquartered in London
- GSGM7324 Assignment: Organisational Development and Change Management
- This assignment entails analyzing a dataset focused on the green purchase intentions of college students in a major educational institution in North India (data taken from Kumar, Rakesh (2022): Business Analytics, Assignment, TU, Malaysia
- Scientific Research Review Assignment 4: Advancements and Ethical Practices in Your Study Area Literature Synthesis
- OPM530: Introduction to Operation Management Assignment, UiTM, Malaysia Sustainability has gained increased attention in the global volatile setting and has pressed businesses to modify
- BPMM1013: Principles of Marketing Assignment, UUM, Malaysia What would you like to do to increase the average monthly revenues by more than 20%? Justify your choice
