CASE STUDY that started as XINEX Company operates in the transport industry in Cameroon specifically in the Yaound-Douala road (Vice-versa). The company is also involved in other businesses like the Cargo and the rail transportations. As a corporation, the capital structure of this enterprise is governed by limited ownership. As a company sole-proprietorship, the company's capital structure is dominated by one person in name Etoundi coupled with some members of his family particularly the wife. The company also uses debt in its capital structure. The estimated value of the capital structure outstanding in 2021 is 60,000,000 FCFA and the retained earnings are 140,000,000 FCFA. In March 2021, Mr Etoundi died. He was the general manager of the company. The auditing carried out after the death of this top manager shows that the average interest rate paid on the debt of the company is 12% before taxes and the average retention ratio is 4%. The Ke on common shares is 13% and on retained earnings is 7%. The tax rate is 35%. The weight of these sources of finance were equitable distributed in the capital structure Under the perspective of the going concern of XINEX Company, the wife of Mr ENOA took over after him. She decided to increase the portfolio of buses of the company. The four (4) buses will cost 120 Million and she proposed three alternatives to the board of directors to finance these purchases; Firstly, to finance the purchase of new buses through debt, to use retained earnings, to issue or to use IPO in the Douala stock-exchange. The interest rate paid on debt before taxes is 15%. The second alternative is financed by retained earnings. The number of outstanding shares is 6,000. The price per share is 10,000 Frs. The shareholders expect to pay after the purchase of the four buses a dividend of 1,250 Frs per share with expected growth rate of 7%. The IPO if used, the company should issue new shares in the market at a price 12,000 per share with a floatation value of 1,00 frs per share. The dividend provided to the new shareholders as incentives should be more that the one at the retained earnings at about 5% with a growth rate of 6%. The duration of the four buses is 10 years. The depreciation is a straight line depreciation. Required: 1. The nature of financial management decisions relevant to the case study. Justify your answers. 2. The corporate finance theories suitable to the case study. Justify your answers. 3. Summarise the two corporate strategies involved in the XINEX enterprise. 4. What are the potential threat/risks that can jeopardise the success of XINEX's new investments? 5. Calculate the WACC of XINEX before the new investment. 6. Calculate the WACE of XINEX following the three financing strategies. 7. Give the relevance of each corporate finance theory identified in line with the case study. 8. How can these theories assist in the improvement of management in XINEX? 9. If the company has actually retained earnings of 80,000,000 FCFA and as chosen to finance his investment starting with retained earnings, how much amount can he raise from financial market using debt from IPO