1. The Bidvest Group Limited headquartered in Cape Town has 50 000 shares valued at R820k and debt of R160k. The interest rate is 10% and current principle payment is 25%. It intends expand operation and expect EBIT of R210K to increase by half (50%). It can raise the required R300K by either borrowing or selling new shares. Bidvest Group can issue 15k share a price of R20 each. Debt levels can be raised a 12% with a principle payment of 5%. Determine the following:

1. ROE with the increased debt; (2 marks)
2. ROE with the increased shares; (2 marks)
3. ROIC with the increased debt; (2 marks)
4. ROIC with the increased shares (2 marks)