Question: REQUIRED: Present, in the given table format above the calculations and figures for the: a) net profit of both option 1 and option 2 .

REQUIRED: Present, in the given table format above the calculations and figures for the: a) net profit of both option 1 and option 2 . b) the return on assets (ROA) for both option 1 and option 2. (4) c) the return on equity (ROE) for both option 1 and option 2 . (2) d) Give a short explanation why the inclusion of debt funding (option 2) increases the return (2) on equity (ROE). e) Calculate the capital structure for option 2 . (4) Cabte Gold timecd is a succesthl mining comparty. Ther want se increase cecrent production and thereby alko the net profit. They will need additional furds to finance the new prodaction assets of k200 millon. The arm of the onectoos of the compary is to increase the returns for equity holders and thereforethey necd to imest gate different. copions for financial leverage to benefit the sharcholfers The folowitg informacion regarsine the curreat situation of Cable Gold Limited is available: "The add tional prodaction asets wil generabe an increase of 10% on the current operating retur rs [EBIT] The tabies below present the incomplete financial beverage stuation of Cable Gold Lmited. * Cption I (table 1) presents the shation where the addeional production assets are funded byequty enler. - Gption 2 (table 2) presents the stuation where the additionsl production assets ate aceuired bruning sos equicy and soss dett fundine
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