Question
Identify five key business risks that AKHA Traders needs to prioritise for the 2024 financial year and explain how these risks can be mitigated. [Consider
Identify five key business risks that AKHA Traders needs to prioritise for the 2024 financial year and explain how these risks can be mitigated. [Consider the local and global economic environment in your answer.] (10) (b) Determine the capital structure of AKHA Traders based on book values at 30 September 2023, and provide possible reasons for movement in the calculations between 2022 and 2023 financial years. [Calculations 3 marks; discussion 2 marks] (5) (c) Calculate the weighted average cost of capital of AKHA Traders based on market values at 30 September 2023. (10) (d) Determine how the business cycle (cash conversion cycle) will change in the 2024 financial year, considering the proposed business model and the projected sales increase. [Only calculations are required, and use closing balances where applicable] (6) (e) Perform a valuation of the 51% equity stake in Amos Hardware (Pty) Ltd. Use any two appropriate valuation methods for reasonableness and a comparability test. (15) (f) Discuss four factors that the Management Committee will have to consider when choosing the appropriate funding facility for the acquisition of Amos Hardware (Pty) Ltd. [Your answer should consider, as a minimum, economic data, AKHA Traders financial information and the available facilities
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