Question: Question 3. Critically evaluate the given assumption. (b) Discuss how the quality of financial projections can be improved. Question 4. (a) Compute Taste Goods gearing

Question 3. Critically evaluate the given assumption. (b) Discuss how the quality of financial projections can be improved. Question 4. (a) Compute Taste Goods gearing ratios for the year end of 2022 to 2025 using the pro forma financial statements. Show all calculations. (b) Is there a risk of covenant breach based on the current forecast? What are the consequences if such breach occurs? Under what circumstance will the gearing ratio remain high in the coming years? Explain by what possible means the gearing level of the company can be lowered?

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