2.4 (5) The ROE of Exco (Pty) Ltd has fallen to 6% and the company expects its operating income (EBIT) to be R10-million, while sales revenue is expected to be R60-million for the coming financial year. In addition, the company's asset turnover is expected to be 1.2 times and Exco (Pty) Ltd is expected to pay R2 million in interest on debt of R20-million. The company pays corporate tax of 28% Calculate the company's expected debt:equity ratio. 2.5 (5) Consider the following information taken from the balance sheet of XYZ Ltd and calculate and interpret the current ratio: Land and buildings Accounts payable Plant and machinery Inventory Account receivable Cash R1 000 000 R300 000 R200 000 R 500 000 R 400 000 R 200 000