The attachments below contains two questions. Kindly address them appropriately.

Dayton is a manufacturing company that is planning to expand by acquiring a business that operates in a complementary area. Dayton has identified two potential acquisitions, Echo and Foxton, that both appear to be suitable for consideration. Dayton will acquire only one company. The following financial indicators have been gathered in order to assist with the decision: Dayton Echo Foxton Revenue $500m f250m f140m Return on capital employed 18% 14% 11% Profit margin 26% 22% 33% Gearing 52% 44% 28% Price/Earnings ratio 12.3 16.2 14.1 (i) Discuss the impact that the acquisition of each entity would have on Dayton's financial indicators. [10] (ii) Discuss the suitability of a typical set of published financial statements for the purpose of deciding a price for a controlling interest in a target company. [6] A subsequent analysis of the two potential target companies indicates that the purchase of Echo will lead to the recognition of a much larger amount for goodwill on consolidation than the purchase of Foxton. (iii) Explain the significance of this difference between the goodwill figures. [4] [Total 20](i) Describe briefly the advantages and disadvantages of using a single figure index for comparing the mortality of two regions of a country. [4] (ii) The following data has been extracted from the 2001 census for the whole of a country with a developed economy and for two of its administrative regions. Region X Region Y Country Age Population Deaths in Population Deaths in Population Deaths in group at June 30 2001 at June 30 2001 at June 30 2001 (000s) (000s) (000s) 0-14 590 136 408 108 10,200 2,550 15-39 980 820 510 441 16,800 13,950 40-59 1,050 5,690 520 2,816 12,900 70,950 60-79 870 42,630 260 11,980 8,900 418,300 80+ 110 18,920 36 6,077 1,200 204,000 Total 3,600 68,196 1,734 21,422 50,000 709,750 (a) Calculate the crude death rate for each region and for the whole country. (b) Calculate the standardised mortality rate and the standardised mortality ratio for each region by reference to the country as a whole. (c) Comment on your results. [13] [Total 17]