QUESTION $2(27$ marks$)$ Peters Ltd $("$Peters$")$ is a large stationery manufacturer and retailer. Peters has a financial year end of $31$ May and is currently reevaluating the entity's asset$-$financing plan. Peters has R$312000000$ permanent current assets and R$395000000$ non$-$current assets. Peters also has R$287000000$ temporary current assets and earnings before interest and taxation $("$EBIT$")$ of R$253000000.$ The required rate of return on long$-$term funds is $\backslash (12\mathrm{.}3\backslash \%\backslash )$ annually compounding. The required rate of return on short$-$term financing is $\backslash (9\mathrm{.}2\backslash \%\backslash )$ annually compounding. The South African Income Tax rate applicable to companies is $\backslash (27\backslash \%\backslash ).$ Ignore VAT. REQUIRED: $2\mathrm{.}1.$ Assist Peters Ltd by calculating the annual financing cost of two potential financing plans: Finance Plan A: $47\mathrm{.}5\backslash \%$ of the assets will be financed by long$-$term sources. Finance Plan B: $\backslash (68\mathrm{.}3\backslash \%\backslash )$ of the assets will be financed by long$-$term sources. $(15$ marks$)2\mathrm{.}2.$ Identify which type of financing policy Finance Plan A and Finance Plan B is$,$ respectively. Support your answer with calculations. Communication Skills: Clarity of expression $2\mathrm{.}3.$ Calculate the net profit after taxation for both Finance Plan $\backslash ($ A $\backslash )$ and Finance Plan B$,$ respectively. $(6$ marks$)$ Competency Framework Reference: