helpQUESTION $1$

a$)$ Soleman Ltd has RM$150$ million in sales. The company expects that its sales will

increase $10$ percent this year. Soleman's financial manager uses a simple inear ${?}_{(})$

regression to forecast the company's inventory level for a given level of projected sales.

Based on historical data, the estimated relationship between inventories and sales $($in

millions of RM$)$ is expressed as:

Inventories $=$$$15\mathrm{.}00+0\mathrm{.}12(Sales)$

i$.$ Given the predictive model above, compute the company's year$-$end.

inventory

ii$.$ Explain how big data analytics can help improve a firm's value.

b$)$ You own $20$ percent of Tea$-$Corp shares, which recently sold for RM$8\mathrm{.}60$ before a

planned $1$ for $4$ bonus issues announcements. Before the bonus issue, there are

$800,000$ paid$-$up shares.

i$.$ What is your financial position before the issue, and what will it be after the

issue? $($Assume the share price falls proportionately$).$

c$)$ Suppose you own $5$ percent of SEACORP ordinary shares, which most recently

sold for RM$98$ prior to a planned two$-$for$-$one share split announcement. Before

the split, there are $50,000$ ordinary shares. Relative to now, what will be your

financial position after the share split?