Kenyang Berhad bought RM4,000,000 building in 2015, which is 85% allocated to building and 15% to the
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Question:
Kenyang Berhad bought RM4,000,000 building in 2015, which is 85% allocated to building and 15% to the land. The company took a loan of 80% with an 8% Interest Rate.
The annual interest of the loan is RM40,000 from the original price of the building. The company pay the loan instalment to the bank for 2% of the original price monthly. The Net Operating Income is RM1,050,000. The building then was sold at RM5,500,000, where the mortgage loan balance is 60% from its original price. The taxable income is 28%.
Ignore cents during computation for the question below:
a) Find Equity dividend
b) Find Debt coverage ratio
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
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