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please answer as quickly as possible LEGEND LTD has embarked on a programme of growth through acquisitions and has identified Alpha Ltd and Beta Ltd

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LEGEND LTD has embarked on a programme of growth through acquisitions and has identified Alpha Ltd and Beta Ltd as companies in the same industrial sector, as potential targets. Using recent financial statement of both Alpha and Beta and further information obtained from a trade association, LEGEND LID has managed to build up the following comparability table: Industrial average Alpha Beta 60 55 58 Payables payment period (days) Return on equity % 18 22 15 7 Dividend per share 25 12 20 Gross profit margin % 1.8 1.7 2.8 Current ratio 1.5 2.5 4 Assets tumover times) 22 28 20 ROCE before tax % 80 20 65 Debt-equity ratio % 28 35 30 Rate of stock turnover (days) 62 57 45 Receivables collection period (days) 10 12 8 PE ratio 16 15 15 Earnings per share 11 5 Net profit margin% 0.5 1.3 0.9 Acid test 13 TO 12 Rate of stock turnover (times) . You are required to categorize the above ratios under: Profitability Liquidity Efficiency/Management Investment Gearing/Leverage (5 marlus) (b) L Give four (4) strategies that a business should adopt to improve its position on: Profitability Liquidity (4 marks) ii. Give two (2) mcrits and two (2) demerits of a highly geared company. (4 marks) Explain any four (4) drawbacks when ratio is used as a diagnostic tool for evaluation of business performance. (4 marks) iv. . Write short notes on the following, stating their relevance to a prospective investor Return on Capital Employed (ROCE) Cost of Capital (6 marks) . v. DuPont is said to be a better way of analyzing Return On Equity (ROE). What are the components of DuPont Analysis? (3 marks) vi. A prospective investor has just retured from a business seminar on the topic "Business start-up in Ghana". He is now considering the most efficient way of financing his business. As a Seasoned Financial Analyst, you are required to explain to him the advantages and disadvantages of financing a business with equity or debt. (4 marks)

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