Below are the financial statements of ZAB Corp:

Income Statement ($ millions)

• Revenue: $9,000
• Cost of Goods Sold: $5,400
• Gross Profit: $3,600
• Operating Expenses: $2,600
• Operating Profit: $1,000
• Interest Expenses: $200
• Tax Expense: $150
• Net Income: $650

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $200
  • Accounts Receivable: $700
  • Inventory: $800
  • Total Current Assets: $1,700
• Non-current Assets:
  • Property, Plant & Equipment: $3,500
  • Other Long-term Assets: $1,800
  • Total Non-current Assets: $5,300
  • Total Assets: $7,000
• Current Liabilities:
  • Trade Creditors: $700
  • Short-term Loans: $400
  • Total Current Liabilities: $1,100
• Long-term Liabilities:
  • Long-term Debt: $2,200
  • Total Liabilities: $3,300
• Equity:
  • Common Shares: $800
  • Retained Earnings: $2,900
  • Total Equity: $3,700
  • Total Liabilities & Equity: $7,000

Requirements:

a) Suggest financing strategies for ZAB Corp to secure $150 million for an acquisition without using existing cash. b) Calculate the current ratio. c) Compute the return on assets (ROA). d) Determine the equity multiplier.