Question: Required: (i) Calculate PeroThree Co.s expected return, standard deviation, and coefficient of variation. (9 marks) (ii) Explain what the coefficient of variation means for investors?
Required: (i) Calculate PeroThree Co.s expected return, standard deviation, and coefficient of variation. (9 marks)
(ii) Explain what the coefficient of variation means for investors? (5 marks)
(b) Dan Co. has RM15 million of sales, RM1.5 million of inventories, RM2 million of receivables, and RM550,000 of payables. Its cost of goods sold is 80% of sales, and it finances working capital with loans at a 7% rate.
Required: (i) What is a cash conversion cycle (CCC)? (2 marks)
(ii) Calculate Dan Co.s CCC. (5 marks)
(iii) Identify TWO (2) ways in which a company may minimize its cash holding. (4 marks) [Total: 25 Marks]
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