Question: Question 3 [Total 28 marks] a) Doremi Bhd is a main distributor of musical instruments in Malaysia and Thailand. The firm had a market capitalization

Question 3 [Total 28 marks] a) Doremi Bhd is a main

Question 3 [Total 28 marks] a) Doremi Bhd is a main distributor of musical instruments in Malaysia and Thailand. The firm had a market capitalization of RM148 billion last December. Based on the financial reports released recently, it had debt of RM15 billion, and cash (including short-term investments) of RM36 billion. Its equity beta was 1.8 and its debt beta was approximately zero. Assume that the risk-free rate is 3.5% per annum and the market risk premium is 5% per annum, calculate the firm's enterprise value and beta value. (7 marks)

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