Consider the financial data for VWX Corp:

Income Statement ($ millions)

• Sales: $2,900
• Cost of Sales: $1,700
• Gross Profit: $1,200
• Operating Expenses: $900
• Operating Profit: $300
• Interest Expenses: $70
• Income Tax Expense: $40
• Net Income: $190

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $50
  • Accounts Receivable: $200
  • Inventory: $300
  • Total Current Assets: $550
• Long-term Assets:
  • Property, Plant & Equipment: $750
  • Other Assets: $150
  • Total Long-term Assets: $900
  • Total Assets: $1,450
• Current Liabilities:
  • Accounts Payable: $150
  • Short-term Loans: $100
  • Total Current Liabilities: $250
• Long-term Liabilities:
  • Long-term Debt: $400
  • Total Liabilities: $650
• Equity:
  • Common Stock: $100
  • Retained Earnings: $700
  • Total Equity: $800
  • Total Liabilities & Equity: $1,450

Requirements:

a) Develop a financing strategy for VWX Corp to raise $55 million for new product development without using existing cash. b) Calculate the quick ratio. c) Compute the return on assets (ROA). d) Assess the equity multiplier.