Twinkle Design Bhd (Twinkle) is an interior designer company and currently is planning to embark into manufacturing miniature building replicas. Total capital of Twinkle is RM2,500,000. 20% of the capital is from the issuance of Bonds. The beta value of this company is 1.2. After-tax cost of debt for this company is 8%. The board of directors of Twinkle will approve this project if the cost of the project does not exceed the expected return from the project, which is estimated at 17%. MiniCas Bhd has been identified as the proxy company with equity beta value of 1.5. A quarter of MiniCas capital comprises of debts, valued at RM500,000. The rate of return of a risk-free asset is expected to be 5%. The average return on the market is 12%, while the market risk premium is 7%. The corporate tax rate is 25%. Required: Advise the board of directors whether Twinkle should approve or reject this project. (Support your answer with calculation.)

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question 1

the reasons for the global discontent in the early 1900s were the following:

desire for independence   was the main fight of many territories which were still under the control of colonial powers. dissatisfaction with peace terms of wwi . the best example is the case of germany, that was forced by the peace treaties to pay very expensive war reparations to the winners of wwi. some time later, german leaders broke relations and stopped recognizing the authority of those who imposed sanctions on their country, counting with the support of the population that was suffering the important economic consequences of the payment of reparations. overproduction of consumer goods which led to hyperinflation scenarios and very week currencies and economies.

question 2

the reasons for the great depression were the following, and these led to wall street crash in october 1929 and caused the subsequent great recession period.

high personal debt, that ended up with many bankrupt investors. falling stock price as everybody was getting rid of the stocks, many because they could not meet the amounts of money required by the margins that backed their investments.

question 3

italy: led by the fascists and benito mussolini   and promised to restore the greatness of the roman empire. germany: led by adolph hitler and the nazi party and conducted anti-jewish riots in austriajapan: was controlled by aggressive military leaders and invaded countries for their resources

2.