Indv FINNANCE

Bachelor of Science (Honours) In Finance (Investment
Strategy)/ Bachelor of Science (Hons) Maritime Business

MODULE NAME: FINANCE FOR BUSINESS
MODULE CODE: FINC6001
ASSIGNMENT TITLE: Company Analysis - Ratio
NO OF ASSIGNMENT TASK TO COMPLETE: Complete All Tasks
ASSIGNMENT SETTER’S NAME: Wan Md Afnan
TERM (SEMESTER): T3,2021
SUBMISSION DEADLINE: 21/11/2021
Task Report Total: 80%
TOTAL MARKS AWARDED: Presentation Total (if any): 20%
Assignment Total: 100%
WEIGHTAGE OF FINAL MARKS:
NAME OF STUDENT: Muhammad Aiezaqul Haikal bin Zainuri

Declaration (to be filled by student and when submitting the report)
I, Muhammad Aiezaqul Haikal bin Zainuri hereby confirm that this assignment task report is
my own work and not copied or plagiarized from any sources. I have referenced the sources
from which the information is obtained by me for this assignment.
_AIEZAQUL _________ _______21/11/2021_______
Signature Date
Task 2
Question 1
a) I) Three characteristics if bond is :
1. Face Value. Face Value of bond is the price of the amount received back from the
bond's issuer on the year of the bond's maturity date. The price of a bond, which is
always fluctuating, might be greater or less than the face value of the bond.
Basically, face value of bond is RM1000.
2. Maturity. Maturity is the day on which the bond is due. There are many example
of maturity such as 30-year bond, 20-year bond and 10-year bond. A 20-year
bond, for example, has a maturity date that is 30 years after the date of issuance.
3. Coupon. Coupon is a type of debt obligation that includes coupons representing
semiannual interest payments. With coupon bonds, the issuer does not keep track
of the purchaser; also, the purchaser's name is not put on any type of certificate.
Bondholders get these coupons during the time period between the bond's issue
and maturity.
ii) Three characteristic of shares is :

1. Limited liabilities. The liability of the company's shareholders is limited (in the
case of limited businesses) to the par value of the shares they own. However,
shareholders' liability is infinite in the event of unlimited corporations.
2. Right to manage the company. Shareholders are the company's owners.
Shareholders have the right to vote. They designate directors to oversee the
company's administration. As owners of the firm, shareholders must shoulder all
risks associated with corporate failure.
3. Permanent capital. Shares are a permanent source of money that may be used by
the company's financial manager for the rest of its existence. The company's
owners don't have to worry about the company's management. There is no
agreement between the corporation and its shareholders regarding the return of
funds. In order to receive his money back, a shareholder might sell his shares to
other investors. For individuals who desire to hold on to their shares for the rest of
the company's existence, this may be a long-term investment.
b)
Therefore, Dato Sri Shanmuga cannot buy the bond because he did not have enough
money to buy bond.
c) i) Financial position is a statement that lists assets, liabilities, and equity of an

organization as of the report date. The statement of financial position contains
information that may be used to do a variety of financial calculations, such as
comparing debt to equity or current assets to current liabilities. Example item for
liabilities is account payable, debt, income taxes payable and more.
ii) The term "cost of goods sold" (COGS) refers to the direct costs incurred by a
corporation in the production of the commodities it sells. In this sum are included the
costs of the materials and labour that were directly utilised in the production of the
item. It does not include indirect expenses, such as distribution costs and sales force
costs, among other things.
iii) Fixed deposit is an investment product offered by banks and non-bank financial
institutions (NBFCs) to assist consumers in saving money. Additionally, a fixed
deposit is a form of bank account in which the investor is guaranteed a fixed rate of
interest. In exchange, the investor undertakes to refrain from withdrawing or gaining
access to their cash for a specified length of time. Interest is paid on a fixed deposit
only at the conclusion of the investment period.
iv) Financial statement are written documents that summarize a business's operations
and financial performance. They include of statement of profit and loss, statement of
financial position, statement of equity and shareholder and statement of cash flows.
Government authorities, accountants, and corporations frequently audit financial
statements to assure their correctness and for tax, financing, and investment purposes.
Question 2
a)
PROJECT A
YEAR FUTURE CASH CUMULATIVE CF
INFLOWS
0 (1,500,000.00) ( 1,500,000.00)
1 380,000.00 (1,120,000.00)
2 490,000.00 (630,000.00)
3 (A) 470,000.00 (160,000.00) (B)
4 530,000.00 (C) 370,000.00
PP = A+(B/C)
= 3 + (160,000 / 530,000)
= 3 + 0.301
=3.03 years
PROJECT B
YEAR FUTURE CASH CUMULATIVE CF
FLOWS (RM) (RM)
0 (2,000,000.00) (2,000,000.00)
1 120,500.00 (1,879,500.00)
2 (A) 1,600,000.00 (279,500.00) (B)
3 450,000.00 (C) 170,500.00
4 200,000.00 370,500.00
PP = A + (B/C)
= 2 + (279,500 / 450,000)
= 2 + 0.62
= 2.62 Years
b)
Ghazali Ventures Sdn Bhd can chose to do project A rather than project B. It is because the
NPV for project A is much more higher than NPV for project B which is -RM34471.70 and
-RM 93446.15 respectively. So, if Ghazali Ventures choose project A is more benefit.
c) Based on my opinion, I think Ghazali Ventures Sdn Bhd did not have to chose either
project. It is because based on Payback Period (PP), both of the project need more than 2
years for payback period which is 3.03 years for Project A and 2.62 years for Project B.
Based on Net Present Value (NPV), both of the project also did not give benefit which is both
of the project has negative value. For project is -RM 34471.71 and for Project B is -RM
93446.15.

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Bachelor of Science (Honours) In Finance (Investment

Strategy)/ Bachelor of Science (Hons) Maritime Business

MODULE CODE: FINC6001

ASSIGNMENT TITLE: Company Analysis - Ratio

NO OF ASSIGNMENT TASK TO COMPLETE: Complete All Tasks

ASSIGNMENT SETTER’S NAME: Wan Md Afnan

TERM (SEMESTER): T3,2021

SUBMISSION DEADLINE: 21/11/2021

Task Report Total: 80%

TOTAL MARKS AWARDED: Presentation Total (if any): 20%

Assignment Total: 100%

WEIGHTAGE OF FINAL MARKS:

NAME OF STUDENT: Muhammad Aiezaqul Haikal bin Zainuri

_AIEZAQUL _____ _21/11/2021_____

ii) Three characteristic of shares is :

c) i) Financial position is a statement that lists assets, liabilities, and equity of an

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