The information is the picture, the questions are below:

Please answer in details.

Required:

Based on the above information,

a$.$ Conduct a financial risk analysis of Lokater, Inc. nsing financial ratios.

b$.$ Complete the pro forma income statements under the two forms of financing.

c$.$ Calculate the market value of Lokatar's equity as well as its price per share before and

after financing by the two alternative methods.

d$.$ Determine the value of the firm $($Lokatar$)$ prior to and after financing with debt and

equity.

e$.$ Calculate the weighted average cost of capital $($WACC$)$ at present and under the two

financing methods.

f$.$ Recommend the best form of financing for Lokatar, Inc. and justify your

recommendation.

g$.$ What additional factors should be considered in determining which form of financing a

firm should adopt?

Goal: Raise $$4\mathrm{.}0$ million for expansion

Option I: Raise $$4\mathrm{.}0$ via debt

Option II: Raise $$4\mathrm{.}0$ via equity