Question: Question 2 (10 Marks) . The below financial statements are from Space-Z PLC. The finance manager has predicted a 15% growth in sales/ expenses and

Question 2 (10 Marks) . The below financial statements are from Space-Z PLC. The finance manager has predicted a 15% growth in sales/ expenses and predicted that all balance sheet items will increase by 15%. Calculate and identify the plug variable after reconciling the Pro-forma statements. (6 Marks) b. Space-W is a sister company of Space-Z and it's an all- equity firm. The company is currently evaluating investment projects and in a recent meeting with Space-z management, they have presented the below projects: Project Estimated Fretum 2 Beta 26 12 19 Spon 21 Sce-42 11% 13% The expected market risk premium is 4% and the government bond rate is 8%. Which project should be accepted? (4 Marks) Question 3

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