QUESTION $1$

mthokozisi a South Afficin mins media and artertairmert compery is having a bed

year in $2004,$ as the compary hes incurred a R$4,0$ tillon reet lows. The loss has pushed mast

of thee rebum measures into the repolive column and the current rato dropped below $1\mathrm{.}0.$ The

compary's dabt iato is stili only $0,27.$

Assume top maragemart of Aysbe is corsidering weys to improve the comperry s reblas. Top

manegerrent is cormidering the folowing trersactions.

Sel of the cabie salevision sagmant of the busirema for RSO milion $($receiving hall in

osh and the othar hat in the form of a long$-$dirm recoivabla$).$ The book value of the

oable Jarevision business is PC$27$ million.

Bonow R$100$ milian on lang$-$larm det.

Purchase vernury ahares for RS$00$ million cash.

Whie oft one$-$fourth of goodwil canisd on the books of $F128$ milion.

Sel addiond advertsements alt the normal gross profle of $60\%.$ The advarlisemenls wel

run immedialely.

Pecq$-$irementa:

Top manegerrent wanb to kow the eflects of thene trersactions $($incrense$,$ decrease

of no eflect$)$ on the following nation of Ayube Media Lid

a$.$ Currart retio

B$.$ Dett nalio

e Tines$-$irteresl$-$aamed ratio

d$.$ Ferum on equily

a$.$ Bcok value per ondinary ahare

Provide you feedback to top manegantent by providing them wth a summary of the impeat of

each transaction by incuading and populading a tabie auch as the below ecample: $($riereme of

decinase no eflect?