Question: REQUIRED For each sub - question below, remember to: Ignore VAT. Clearly show all your calculations in detail; and Where necessary, indicate irrelevant amounts /

REQUIRED For each sub-question below, remember to: Ignore VAT. Clearly show all your calculations in detail; and Where necessary, indicate irrelevant amounts/adjustments with a R0(nil-value). a) Evaluate the current business model of Luxe Living by applying Porters Five Forces Framework. (5) b) Discuss practical strategic measures that Luxe Living can take to successfully achieve a turnaround of the business. (5) c) Calculate the weighted average cost of capital (WACC) for Luxe Living based on the target capital structure on 29 February 2024.(8) d) i. Luxe Living is considering funding the solar farm project using a combination of any three debt facilities that were mentioned in Section A, Note 3 above. Evaluate the provided options and advise on the most suitable debt facilities they can consider. No calculations are necessary. ii. Calculate the market values of Luxe Livings medium-term loan and debentures as at 29 February 2024.(6)(4) e) Based on the plans for the 2025 financial year, advise the finance team as to whether it would be financially beneficial to implement the proposed changes to the working capital management policy. Assume a weighted average cost of capital of 14,5% for the FY2025. Support your advice with relevant and necessary calculations. Where applicable, use average balances. Ignore tax implications. Calculations 5 marks Advice 1 mark (6) f) Identify three (3) financial risks evident in Section B of the scenario and explain how Luxe Living can best respond to each of these financial risks. Risk identification 3 marks Corresponding risk responses 3 marks (6) TOTAL 4

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