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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

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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 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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