BWFF2033/FINANCIAL MANAGEMENT

ANSWER SCHEME
1
2

D.
C.

3
4
5
6

B.
C.
B.
D.

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

A.
D.
B.
B.
A.
A.
A.
C.
A.
C.
D.
B.
D.
B.
A.
B.

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

A.
B.
D.
D.
D.
A.
A.
C.
D.
D.
A.
A.
B.
B.
A.
B.
D.

Chief Executive Officer (CEO)

Because they have been hired to represent the interests of the
current shareholders.
Capital budgeting
I, III and IV only
The true owners of the corporation are the preferred stockholders.
The best form of business entity to attract new capital is the sole
proprietorship because investors only need to deal with one owner.
I, II and III only
I, II, III and IV
an Initial Public Offering (IPO)
Money market
RM100 of inventory that is sold today for RM100 cash
Trademark
Depreciation
Taxes reduce both net income and operating cash flow.
The dividends paid exceeded the net new equity raised.
RM11,129
RM 5,860
RM300
RM309,076
RM 1,269.46
I and II only
An increase in the depreciation expense will not affect the cash
coverage ratio.
equity multiplier, profit margin, and total asset turnover
20.2 times
RM1,400,000
2.72
RM161.54
1.68
RM861
equity multiplier
I, II, III, and IV
Accounts payable
plug variable
directly with sales
is normally higher than the internal growth rate
RM7,200
RM685.14
4.58 percent
7.19 percent

BWFF2033/FINANCIAL MANAGEMENT

40 C.

RM646.67