SECTION 1: Answer all questions in this section. Question 1 Salyssa Inc is a Caribbean company which operates 2 divisions: Cold Storage and Meat Processing. The company is extremely profitable, and is considering a number of new projects as part of its planned expansion. Cold Storage The Cold Storage division specializes in breakfast foods and other frozen goods. They are about to embark on the building of a facility that would maintain the freshness of goods for a longer period of time. Meat Processing Meat Processing deals with transforming raw meats into processed products such as burgers and sausages. The company plans to implement a processing machine that enables a quicker transformation from raw meat to processed goods. Table 1: Divisional and Consolidated information Effective Business Segment Debt/Equity ratio Spread to Treasury tax rate Consolidated 33.2% 1.71% 35% Cold Storage 35.0% 1.90% 35% Identifiable Assets (millions) $42 ? Meat Processing