Target WACC please as well as The growth plan target Financing and WACC. Yellow, grey, pink and blue boxes as well and formula's used. THANK YOU

\begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 36 & & Other Strategic Decision Matters & & & \\ \hline 37 & A) & Debt & & & \\ \hline 38 & 1) & \multicolumn{4}{|c|}{ Venture demand loan can be used as a demand loan provided it does not exceed 70% of accounts receivable. } \\ \hline 39 & & \multicolumn{2}{|l|}{ Long-term Interest rate = Prime +2.5%=9.0%} & & \\ \hline 40 & 2) & \multicolumn{4}{|c|}{ Term loan repayable will now be repayable over 5 years in equal installments. Interest rate adjusted } \\ \hline 41 & & to 8.45% over five year term. & & & \\ \hline 42 & & Maximum borrowing is 40% of Equipment & & & \\ \hline 43 & 3) & \multicolumn{4}{|c|}{ Amended Mortgage to be repayable over 25 years 7.5% per annum - locked for 5 years } \\ \hline 44 & & \multicolumn{3}{|c|}{ Maximum borrowing is 65% of Land and Buildings } & \\ \hline 45 & 4) & \multicolumn{3}{|c|}{ Refinance term loan - to be completed when transactions completed } & \\ \hline 46 & & - Interest rate proposed & & 10.00% & \\ \hline 47 & & - Maximum borrowing capacity & & $10,000,000 & \\ \hline 48 & & - Repayment & & \multicolumn{2}{|c|}{10 years equal principal payments } \\ \hline 49 & & & & & \\ \hline 50 & B) & Equity & & & \\ \hline 51 & & Shares issued and outstanding & & 4,000,000 & Pre-split - consider when refinancing \\ \hline 52 & & \multicolumn{3}{|l|}{ Share price - based on Year 1 EBITDA X Multiplier } & \\ \hline 53 & & EBITDA - Board approved financials & & v & Determine from Board approved financials \\ \hline 54 & & Multiplier & & 5.00 & \\ \hline 55 & & Current market value & & $ & \\ \hline 56 & & Share price & & $ & Pre-split - consider when refinancing \\ \hline 57 & & Dividends & & $ & \\ \hline 58 & & Cost of Equity Long Range Target & & 18.50% & \\ \hline 59 & & \multicolumn{3}{|c|}{ Assumed to remain constant for transactions planned } & \\ \hline 60 & & Minimum ownership position - founders & & 52% & \\ \hline 61 & & Venture capital share price "discount" & & 27.00% & \\ \hline 62 & & Private placement market price & & $ & \begin{tabular}{l} Pre-split - consider when refinancing - \\ rounded to nearest whole $ \end{tabular} \\ \hline 63 & & & & & \\ \hline 64 & C) & Other information & & & \\ \hline 65 & & Tax Rate - Pro-forma Years (future) & & 26% & Use for target WACC \\ \hline 66 & & Risk premiums & & & \\ \hline 67 & & - Equipment & & 2.50% & \\ \hline 68 & & - Business acquisitions & & 4.50% & \\ \hline 69 & & & & & \\ \hline 70 & D) & WACC & & & \\ \hline 71 & & Target WACC & & 0.00% & from Target WACC tab \\ \hline 72 & & Range of Tolerance for Next Year & & +/.5% & Range for 2B \\ \hline 73 & & & & Low & \\ \hline 74 & & & & 0.50% & \\ \hline 75 & & & & High & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline A & B \\ \hline Balance Sheet & Approved \\ \hline As at & October 312024 \\ \hline \multicolumn{2}{|l|}{ Assets } \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash & 988,887 \\ \hline Accounts receivable & 5,320,000 \\ \hline Inventory & 6,128,640 \\ \hline \multirow[t]{2}{*}{ Prepaid expenses } & 38,615 \\ \hline & 12,476,142 \\ \hline \multicolumn{2}{|l|}{ Property, plant and equipment } \\ \hline Land & 1,690,000 \\ \hline Buildings & 2,710,000 \\ \hline Equipment & 1,842,000 \\ \hline \multirow[t]{2}{*}{ Vehicles } & 480,000 \\ \hline & 6,722,000 \\ \hline \multicolumn{2}{|l|}{ Less: Accumulated amortization } \\ \hline Accumulated amortization - Buildings & (276,024) \\ \hline Accumulated amortization - Equipment & (149,725) \\ \hline \multirow[t]{3}{*}{ Accumulated amortization - Vehicles } & (48,890) \\ \hline & (474,639) \\ \hline & 4,814,999 \\ \hline \multirow[t]{2}{*}{ Goodwill and other intangibles } & 690,000 \\ \hline & 19,413,503 \\ \hline \multicolumn{2}{|l|}{ Liabilities and Shareholders' Equity } \\ \hline \multicolumn{2}{|l|}{ Current liabilities } \\ \hline Accounts payable & 7,660,800 \\ \hline Deferred revenue & 300,000 \\ \hline Income taxes payable & 655,142 \\ \hline Venture short term loan - due on demand & 3,965,811 \\ \hline \multirow[t]{2}{*}{ Current portion of long term debt } & 195,000 \\ \hline & 12,776,752 \\ \hline Term loan payable & 1,280,000 \\ \hline Refinance term loan & - \\ \hline Mortgage payable & 1,050,000 \\ \hline \multirow[t]{2}{*}{ Due to Relatives } & - \\ \hline & 2,330,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Mortgage payable \\ Due to Relatives \end{tabular}} & 1,050,000 \\ \hline & - \\ \hline & 2,330,000 \\ \hline \multirow[t]{2}{*}{ Less: portion due within one year } & (195,000) \\ \hline & 2,135,000 \\ \hline \multirow[t]{2}{*}{ Deferred income taxes } & 438,812 \\ \hline & 15,350,564 \\ \hline \multicolumn{2}{|l|}{ Shareholders' Equity } \\ \hline Share capital & 1,902,807 \\ \hline \multirow[t]{3}{*}{ Retained earnings } & 2,160,132 \\ \hline & 4,062,939 \\ \hline & 19,413,503 \\ \hline \\ \hline Growing Soils Ltd. & Board \\ \hline \multirow{2}{*}{\begin{tabular}{l} Income Statement \\ Year Ended \\ \end{tabular}} & Approved \\ \hline & October 312024 \\ \hline Revenues & 42,560,000 \\ \hline Cost of goods sold & 30,643,200 \\ \hline \multirow[t]{2}{*}{ Gross profit } & 11,916,800 \\ \hline & 28.00% \\ \hline \multicolumn{2}{|l|}{ Expenses } \\ \hline Selling & 5,178,500 \\ \hline Administrative & 2,764,153 \\ \hline Amortization & 474,639 \\ \hline \multirow[t]{2}{*}{ Interest } & 540,423 \\ \hline & 8,957,714 \\ \hline Income before income taxes & 2,959,086 \\ \hline \multicolumn{2}{|l|}{ Income tax expense } \\ \hline - current & 655,142 \\ \hline \multirow{2}{*}{\begin{tabular}{l} - deferred \\ Income tax expense \end{tabular}} & 143,812 \\ \hline & 798,953 \\ \hline Net income & 2,160,132 \\ \hline Retained earnings, beginning & - \\ \hline Less: Dividends & - \\ \hline Retained earnings, ending & 2,160,132 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Growth Plan - Target Financing and WACC } \\ \hline \multicolumn{6}{|c|}{ Target Weighted Average Cost of Capital } \\ \hline \multicolumn{6}{|c|}{ As Is } \\ \hline Capital Item & $ Value & Weighted & Pre-Tax & After-Tax & Weighted \\ \hline & Targets & Average & Return & Return & Component \\ \hline & \begin{tabular}{c} End of five years \\ forecast \end{tabular} & & & \begin{tabular}{c} Pre-tax X \\ tax rate) \end{tabular} & \begin{tabular}{c} Weighted Average X \\ After Tax Return \end{tabular} \\ \hline Tax Rate & \multicolumn{2}{|l|}{0%} & & & \\ \hline Venture demand loan & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline Term loan payable & 15,000,000 & 15.00% & 0.00% & 0.00% & 0.00% \\ \hline Refinance term loan & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline Mortgage payable & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline & & & & & \\ \hline Share capital & 30,000,000 & 30.00% & & 0.00% & 0.00% \\ \hline Retained earnings & 25,000,000 & 25.00% & & 0.00% & 0.00% \\ \hline Total Net Assets & 100,000,000 & 100% & & & 0.00% \\ \hline & & & & & 0.00% \\ \hline Debt as \% of Total Net Assets & & & & & 0.00% \\ \hline Equity as % of Total Net Assets & & & & & 0.00% \\ \hline & & & & & 0.00% \\ \hline & & & & & \\ \hline \multicolumn{6}{|c|}{ Note: The Capital Base outlined above includes the working capital balance of the business - which is the } \\ \hline \multicolumn{3}{|c|}{ net balance of current assets minus current liabilities } & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 36 & & Other Strategic Decision Matters & & & \\ \hline 37 & A) & Debt & & & \\ \hline 38 & 1) & \multicolumn{4}{|c|}{ Venture demand loan can be used as a demand loan provided it does not exceed 70% of accounts receivable. } \\ \hline 39 & & \multicolumn{2}{|l|}{ Long-term Interest rate = Prime +2.5%=9.0%} & & \\ \hline 40 & 2) & \multicolumn{4}{|c|}{ Term loan repayable will now be repayable over 5 years in equal installments. Interest rate adjusted } \\ \hline 41 & & to 8.45% over five year term. & & & \\ \hline 42 & & Maximum borrowing is 40% of Equipment & & & \\ \hline 43 & 3) & \multicolumn{4}{|c|}{ Amended Mortgage to be repayable over 25 years 7.5% per annum - locked for 5 years } \\ \hline 44 & & \multicolumn{3}{|c|}{ Maximum borrowing is 65% of Land and Buildings } & \\ \hline 45 & 4) & \multicolumn{3}{|c|}{ Refinance term loan - to be completed when transactions completed } & \\ \hline 46 & & - Interest rate proposed & & 10.00% & \\ \hline 47 & & - Maximum borrowing capacity & & $10,000,000 & \\ \hline 48 & & - Repayment & & \multicolumn{2}{|c|}{10 years equal principal payments } \\ \hline 49 & & & & & \\ \hline 50 & B) & Equity & & & \\ \hline 51 & & Shares issued and outstanding & & 4,000,000 & Pre-split - consider when refinancing \\ \hline 52 & & \multicolumn{3}{|l|}{ Share price - based on Year 1 EBITDA X Multiplier } & \\ \hline 53 & & EBITDA - Board approved financials & & v & Determine from Board approved financials \\ \hline 54 & & Multiplier & & 5.00 & \\ \hline 55 & & Current market value & & $ & \\ \hline 56 & & Share price & & $ & Pre-split - consider when refinancing \\ \hline 57 & & Dividends & & $ & \\ \hline 58 & & Cost of Equity Long Range Target & & 18.50% & \\ \hline 59 & & \multicolumn{3}{|c|}{ Assumed to remain constant for transactions planned } & \\ \hline 60 & & Minimum ownership position - founders & & 52% & \\ \hline 61 & & Venture capital share price "discount" & & 27.00% & \\ \hline 62 & & Private placement market price & & $ & \begin{tabular}{l} Pre-split - consider when refinancing - \\ rounded to nearest whole $ \end{tabular} \\ \hline 63 & & & & & \\ \hline 64 & C) & Other information & & & \\ \hline 65 & & Tax Rate - Pro-forma Years (future) & & 26% & Use for target WACC \\ \hline 66 & & Risk premiums & & & \\ \hline 67 & & - Equipment & & 2.50% & \\ \hline 68 & & - Business acquisitions & & 4.50% & \\ \hline 69 & & & & & \\ \hline 70 & D) & WACC & & & \\ \hline 71 & & Target WACC & & 0.00% & from Target WACC tab \\ \hline 72 & & Range of Tolerance for Next Year & & +/.5% & Range for 2B \\ \hline 73 & & & & Low & \\ \hline 74 & & & & 0.50% & \\ \hline 75 & & & & High & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline A & B \\ \hline Balance Sheet & Approved \\ \hline As at & October 312024 \\ \hline \multicolumn{2}{|l|}{ Assets } \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash & 988,887 \\ \hline Accounts receivable & 5,320,000 \\ \hline Inventory & 6,128,640 \\ \hline \multirow[t]{2}{*}{ Prepaid expenses } & 38,615 \\ \hline & 12,476,142 \\ \hline \multicolumn{2}{|l|}{ Property, plant and equipment } \\ \hline Land & 1,690,000 \\ \hline Buildings & 2,710,000 \\ \hline Equipment & 1,842,000 \\ \hline \multirow[t]{2}{*}{ Vehicles } & 480,000 \\ \hline & 6,722,000 \\ \hline \multicolumn{2}{|l|}{ Less: Accumulated amortization } \\ \hline Accumulated amortization - Buildings & (276,024) \\ \hline Accumulated amortization - Equipment & (149,725) \\ \hline \multirow[t]{3}{*}{ Accumulated amortization - Vehicles } & (48,890) \\ \hline & (474,639) \\ \hline & 4,814,999 \\ \hline \multirow[t]{2}{*}{ Goodwill and other intangibles } & 690,000 \\ \hline & 19,413,503 \\ \hline \multicolumn{2}{|l|}{ Liabilities and Shareholders' Equity } \\ \hline \multicolumn{2}{|l|}{ Current liabilities } \\ \hline Accounts payable & 7,660,800 \\ \hline Deferred revenue & 300,000 \\ \hline Income taxes payable & 655,142 \\ \hline Venture short term loan - due on demand & 3,965,811 \\ \hline \multirow[t]{2}{*}{ Current portion of long term debt } & 195,000 \\ \hline & 12,776,752 \\ \hline Term loan payable & 1,280,000 \\ \hline Refinance term loan & - \\ \hline Mortgage payable & 1,050,000 \\ \hline \multirow[t]{2}{*}{ Due to Relatives } & - \\ \hline & 2,330,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Mortgage payable \\ Due to Relatives \end{tabular}} & 1,050,000 \\ \hline & - \\ \hline & 2,330,000 \\ \hline \multirow[t]{2}{*}{ Less: portion due within one year } & (195,000) \\ \hline & 2,135,000 \\ \hline \multirow[t]{2}{*}{ Deferred income taxes } & 438,812 \\ \hline & 15,350,564 \\ \hline \multicolumn{2}{|l|}{ Shareholders' Equity } \\ \hline Share capital & 1,902,807 \\ \hline \multirow[t]{3}{*}{ Retained earnings } & 2,160,132 \\ \hline & 4,062,939 \\ \hline & 19,413,503 \\ \hline \\ \hline Growing Soils Ltd. & Board \\ \hline \multirow{2}{*}{\begin{tabular}{l} Income Statement \\ Year Ended \\ \end{tabular}} & Approved \\ \hline & October 312024 \\ \hline Revenues & 42,560,000 \\ \hline Cost of goods sold & 30,643,200 \\ \hline \multirow[t]{2}{*}{ Gross profit } & 11,916,800 \\ \hline & 28.00% \\ \hline \multicolumn{2}{|l|}{ Expenses } \\ \hline Selling & 5,178,500 \\ \hline Administrative & 2,764,153 \\ \hline Amortization & 474,639 \\ \hline \multirow[t]{2}{*}{ Interest } & 540,423 \\ \hline & 8,957,714 \\ \hline Income before income taxes & 2,959,086 \\ \hline \multicolumn{2}{|l|}{ Income tax expense } \\ \hline - current & 655,142 \\ \hline \multirow{2}{*}{\begin{tabular}{l} - deferred \\ Income tax expense \end{tabular}} & 143,812 \\ \hline & 798,953 \\ \hline Net income & 2,160,132 \\ \hline Retained earnings, beginning & - \\ \hline Less: Dividends & - \\ \hline Retained earnings, ending & 2,160,132 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Growth Plan - Target Financing and WACC } \\ \hline \multicolumn{6}{|c|}{ Target Weighted Average Cost of Capital } \\ \hline \multicolumn{6}{|c|}{ As Is } \\ \hline Capital Item & $ Value & Weighted & Pre-Tax & After-Tax & Weighted \\ \hline & Targets & Average & Return & Return & Component \\ \hline & \begin{tabular}{c} End of five years \\ forecast \end{tabular} & & & \begin{tabular}{c} Pre-tax X \\ tax rate) \end{tabular} & \begin{tabular}{c} Weighted Average X \\ After Tax Return \end{tabular} \\ \hline Tax Rate & \multicolumn{2}{|l|}{0%} & & & \\ \hline Venture demand loan & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline Term loan payable & 15,000,000 & 15.00% & 0.00% & 0.00% & 0.00% \\ \hline Refinance term loan & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline Mortgage payable & 10,000,000 & 10.00% & 0.00% & 0.00% & 0.00% \\ \hline & & & & & \\ \hline Share capital & 30,000,000 & 30.00% & & 0.00% & 0.00% \\ \hline Retained earnings & 25,000,000 & 25.00% & & 0.00% & 0.00% \\ \hline Total Net Assets & 100,000,000 & 100% & & & 0.00% \\ \hline & & & & & 0.00% \\ \hline Debt as \% of Total Net Assets & & & & & 0.00% \\ \hline Equity as % of Total Net Assets & & & & & 0.00% \\ \hline & & & & & 0.00% \\ \hline & & & & & \\ \hline \multicolumn{6}{|c|}{ Note: The Capital Base outlined above includes the working capital balance of the business - which is the } \\ \hline \multicolumn{3}{|c|}{ net balance of current assets minus current liabilities } & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular}