Question: I need help with answering this question please SECTION C: SHORT ANSWERS ON CASE ANALYSIS Please answer the following questions. You should answer the question
SECTION C: SHORT ANSWERS ON CASE ANALYSIS Please answer the following questions. You should answer the question directly, using material covered in the case discussion and exhibits. This section is worth 30 points. - In 2020, IKEA signed an agreement with Pradera, one of Europe's leading property funds, to acquire 25 retail parks in eight European countries for 900 million. The retail parks will further IKEA's expansion in Europe, providing valuable retail space to expand the number of stores. IKEA anticipated that these parks would yield 47.5 million annually in additional cash flows next period, largely from rental fees. Retail in Europe is expected to increase 2.9% per annum from 8.73 trillion in 2019 to 9.79 trillion in 2023. IKEA's discount rate for investment projects is set at 7.5%. 1. Based on the information above, what growth rate in cash flows is required to cover the cost of acquiring the retail parks? Would you suggest this acquisition? Why? (10 points) 2. Using the exhibit below, assess the performance of IKEA's strategy. Does it have the financial capacity to complete the acquisition? Support with financial ratios. (10 points) 3. Outside of this transaction, what strategic initiative(s) should IKEA implement to enhance its store competitiveness in international markets? (10 points) Address this question by referencing IKEA's experiences in India
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