Question: QUESTION 3 Swift Supplies is considering two financing options for the R 1 , 0 0 0 , 0 0 0 investment: o Option 1

QUESTION 3 Swift Supplies is considering two financing options for the R1,000,000 investment: o Option 1: Issue additional equity shares. o Option 2: Take a bank loan at an annual interest rate of 8%.(20)3.1. Calculate the impact of each option on the companys equity and debt-to-equity ratio. (10)3.2. Compare the financial risks associated with each option. Provide a well- reasoned explanation.

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