$10.$ Case $(10\mathrm{.}1)$ Grenache Ltd

Require:

a$)$ Prepare, insofar as the information allows, a pro forma income statement for $2011$ for each

scenario assuming:

I. A loan is obtained

II$.$ A rights issue is made. Calculations should be in millions of dollars and to one decimal

place.

b$)$ Calculate the earnings per share and leverage ratio for $2011$ for each scenario assuming:

I. A loan is obtained

II$.$ A rights issue of shares is made.

c$)$ Assess the future plans and financing options being considered from the perspective of a

current shareholder and state what additional information, if any, you may require making a

more considered assessment.