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4 (25 p.) The management board of the ABC company is thinking of implementing a new strategy which entails making certain investment expenses. However, the

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4" (25 p.) The management board of the ABC company is thinking of implementing a new strategy which entails making certain investment expenses. However, the forecast says that investment would translate into an increase of revenues. Valuation for the company without including the strategy has shown that the value of equity (E) of the ABC company amounts to PLN 5 million. without strategy E (equity) D at beginning of period V (value of indebted company) The accounting balance sheet of ABC company is presented below: 5 000 thousand PLN 200 thousand PLN 5200 thousand PLN Assets Fixed assets Current assets ??. 5 200 Inventories Accounts receivable Cash 900 300 300 300 Total assets 6 100

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