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RE Company is competing with giant local and overseas Companies in the turnoil economy of the MENA Region. The expected change in Nwc is
RE Company is competing with giant local and overseas Companies in the turnoil economy of the MENA Region. The expected change in Nwc is expected to be 15% which Constitutes 75% of the expected change in Fixed Assets. The total Assets in year X amounted to $42.000.000. The current Labilities equal to 0.357 TA and equals 75%% of the Current Assets. Long term Investment Intangible assets and both are (y-y). To Strike a balance between satisfaction of Cash-Oriented Shareholders and strengthen of equity Positioning, b has been decided to be 110% of the DPR ROTA is expected to be 12% The Company could raise $3,000,000 from the equity Market. Required: A. As the financial analyst, Compute the expected change in Debt Finance and the impact on the expected equity Profile. B. What would be the desired externall finance ie A To is 44% and FA To is less than one.
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