# BBF30403: SunTech Bhd is a company that owns several technology stores in Malaysia: Corporate Finance Assignment, WOU, Malaysia

 University Wawasan Open University (WOU) Subject BBF30403 Corporate Finance Assignment

QUESTION 2
(a) SunTech Bhd is a company that owns several technology stores in Malaysia. They are considering opening a new store in Penang taking advantage of the proximity to a university campus.

This project is financed with a zero-coupon bond with a market value today of RM291.26 million. The bond matures in one year. The project will generate a cash flow in two years of either RM300 million with a probability of 60% or RM280 million with a probability of 0.4%. The yield to maturity of the bond is 3% annually. Assume investors are risk neutral. Calculate;

(i) The face value of debt.
(ii) Annual return demanded by investors Explain;
(iii) The difference between yield to maturity and cost of debt (Rd).

(b) Your investment portfolio consists of RM15,000 invested in only one stock, Roof Berhad. The risk-free interest is 5%. The expected return is 12% and standard deviation of 40% for Roof Berhad. The market portfolio has an expected return of 10% and a standard deviation of 18%. The CAPM conditions are all verified.
(i) Graph the position of Roof Berhad and market portfolio in Capital Market Line (CML).
(ii) Calculate the systematic risk and idiosyncratic risk of Roof Berhad.

## Get Help By Expert

Unleash success in BBF30403 Corporate Finance assignments with our exclusive assignment helper online services, designed for Malaysian students. Explore seamless support, including specialized homework writing help malaysia that allows you to pay our experts for personalized assistance.

Online Exam & Assignment Writing Services

70841+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

##### IMS607 Advanced Web Design and Content Management UITM Assignment Sample Malaysia
IMS607 Advanced Web Design and Content Management is an exciting course for anyone interested in learning the basics behind creating and managing a web presence. The class offers a comprehensive…
Assignment Sample
##### LAW437 Constitutional Law I UITM Assignment Answers Malaysia
LAW437 Constitutional Law I explores the Malaysian Federal Constitution and the delicate balance between the different branches of government. Students will gain an understanding of Malaysia's constitutional history and how…
Law

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now