Question 1
The income statement and balance sheet of Sheng Siong Group Ltd (“Sheng Siong”), one of Singapore’s largest retailers with 67 stores located across the island. over the last three years are provided below

(a) Calculate Sheng Siong’s cash flow from assets for 2021 and 2022 and discuss your observations. Your answer should not exceed 200 words.
(b) Appraise Sheng Siong’s profitability and long-term solvency ratios over the last three years. Display the ratios you computed in the following table (i.e., input the related ratios, formula, and the values for each year).

 

Question 2
Stella Lam (“Stella”) recently joins the workforce, and her starting salary is $3,500 per month. The CPF contribution rate (both employer and employee) for her age group is 37%, and this is allocated as follows:
• Ordinary account = 60%
• Medisave account = 22%
• Special account = 18%
The interest rate paid by CPF Board on member’s ordinary account is 2.5% per annum, compounded monthly. As Stella intends to settle down with her fiancé, she needs to set aside $25,000 in her ordinary account to buy a 4-room HDB apartment.

Calculate how long Stella needs to work in order to afford the HDB apartment and examine how she can possibly accelerate this process. State the assumptions you have made.

Question 3
The 10-year bond yield issued by the Singapore Government has been increasing consistently over the last three years, from 0.84% in 2020, to 1.67% in 2021 and 3.09% in 2022.
(a) Examine the implications of the expected return on stocks using the capital asset pricing model in the current economic environment.
The price and dividend information over the last five years relating to Walmart (operating in the discount stores industry) and Shell (operating in the oil and gas industry) are shown below: