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could you please answer question 7. I found that gearing in q.5 is 18.88% Q7 In addition, the finance director, Liam Diggsy, expects a rate

could you please answer question 7. I found that gearing in q.5 is 18.88% image text in transcribed
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Q7 In addition, the finance director, Liam Diggsy, expects a rate of return of 10% on an investment of that size. Activity: Calculate the ARR and advise whether the investment meets with this criteria (using the data in question 5) Your workings: Done Summary Calculations.docx Topic: Summary Practice Q1 Shakermaker plc, a children's toy manufacturer and retailer, has released its financial information for the last accounting year. On 2284 m Revenue 8,466 Non-current assets Cost of sales 5,432 rent assets Gross profit 3,034 Inventories Operating costs 2,907 eceivables Operating profit Figure lIncome Statement for las financial year Current liabilities Payables 1,555 154 486 122 1,916 Long-term liabilities 404 Net assets 2,139 Total Equity 2,139 Figure 2 - Balance Sheet as a year end 05 Shakermaker plc is considering taking over one of its main competitors, Oasis ple, in a deal that will cost 595m. The company is planning to finance this acquisition through loan capital. Acquisitions director, Alan McGee, has estimated the following net cashflows from the acquisition for the next 5 years. Cashflow 220 180 166 145 140 . Figure 3 - estimated net cash flows in Em

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