please answer 2.3

2.1 Study the financial statements below and complete the question that follows: Calculate the folowing ratios: a. Acid test ratio (2 Marks) b. Debl ratio (2. Marks) c. Retum on shareholders' interest [Sub Total 6 Marks] 2.2 On 1 January 2019. Thabo deposited R8 485 into a fixed deposit acoount at 95% for 2 years. At maturity, he withdrew R1 450 cash and reinvested the balance of the amount in another account offering interest of 9.75% p.a. How much will he have on 31 December 2022? (5 Marks) 2.3 Styabonga lncorporated wants to determine the cost of the components in their capital structure. Use the information in the table below to calculate the congany's Weighted Average Cost of Capital (WACC). (7 Marks) Page 8 of 93 2.4 Excel Ltd manufactures office desks at their factory. The fixed cost is R280 450 and their variable cost is R130 per desk. The desks are sold at R450 each. a. How many desks must be produced to break even? (2. Marks) b. How many desks must be produced to make a profit? (1 Mark) c. How many desks must be produced to make a profit of R340 000? (2. Marks) [Sub Total 5 Marks] 2.5 The management of Excel Limited is considering the purchase of new equipment to improve the rate of production in their factory. Income from the new equipment is projected to be R240 000 in the first year, R380 000 in the second year and R535 000 after three years. The initial investment is R640 000 . They are evaluating the financial viabalty of this project and require your advice. The discount rate is 11.5%. a. Calculate the Net Present Value of the project. (6 Marks) b. Advise the organisation whether it should proceed with the project or not. (1 Mark) [Sub Total 7 Marks]