SECTION 3: LONG QUESTION [33 Marks] You are the new assistant to the Financial Manager of Evan Jan Pool (Pty) Ltd. (EJP) and you have been tasked to assist with ad hoc finance duties that are given to the Financial Manager by the Chief Financial Officer (CFO). The CFO is interested to know whether the company is attractive to investors and asked that you determine the entity's attractiveness through the Economic Value Add method. The financial year of Evan Jan Pool (Pty) Ltd. (EJP) is 31 December. The CFO has provided the following abridged Statement of Financial position of EJP as at 31 December. Additional information: - The advertising \& staff training costs incurred by the company yield economic benefits in the year in which they are incurred. - The company has an average pre-tax cost of debt of 8.3% and a return on equity of 18%. - Assume a marginal tax rate of 27%. Required: Calculate the Economic Value Add of EJP for the 2022 financial year and briefly explain if EJP is attractive to investors. 1. Make use of Microsoft Excel and make use of cell referencing and formulas. 2. Present your final answer in Formula view and Normal view when converting your assignment to PDF as per the instructions of the assessment. The CFO also provided a working paper which consists of income statement line items to assist you with the calculations: 3. Round off your final answer to 2 decimal figures. 4. Mark allocation Breakdown: a. Average rate of return Normal view - 6 Marks; Formula view - 6 Marks b. EBIT Normal view - 7 Marks; Formula view - 1 Mark c. EVA Normal view -7 Marks; Formula view -2 Marks d. Discussion and Conclusion- 4 Marks SECTION 3: LONG QUESTION [33 Marks] You are the new assistant to the Financial Manager of Evan Jan Pool (Pty) Ltd. (EJP) and you have been tasked to assist with ad hoc finance duties that are given to the Financial Manager by the Chief Financial Officer (CFO). The CFO is interested to know whether the company is attractive to investors and asked that you determine the entity's attractiveness through the Economic Value Add method. The financial year of Evan Jan Pool (Pty) Ltd. (EJP) is 31 December. The CFO has provided the following abridged Statement of Financial position of EJP as at 31 December. Additional information: - The advertising \& staff training costs incurred by the company yield economic benefits in the year in which they are incurred. - The company has an average pre-tax cost of debt of 8.3% and a return on equity of 18%. - Assume a marginal tax rate of 27%. Required: Calculate the Economic Value Add of EJP for the 2022 financial year and briefly explain if EJP is attractive to investors. 1. Make use of Microsoft Excel and make use of cell referencing and formulas. 2. Present your final answer in Formula view and Normal view when converting your assignment to PDF as per the instructions of the assessment. The CFO also provided a working paper which consists of income statement line items to assist you with the calculations: 3. Round off your final answer to 2 decimal figures. 4. Mark allocation Breakdown: a. Average rate of return Normal view - 6 Marks; Formula view - 6 Marks b. EBIT Normal view - 7 Marks; Formula view - 1 Mark c. EVA Normal view -7 Marks; Formula view -2 Marks d. Discussion and Conclusion- 4 Marks