The nanciai statements of the rm was compiled recently and below is an extract from them: Statement of nancial Total assets 15 E300 Lon term liabilities 8 [Hit] Short term liabiiities 3 [Hit] Statement of comrehensive incorne All values in R DDD's Gross urofit 20 BUD Dan-eratin EKIEHSES 1D BUD Financin costs Net Irot E 120 *A tax rate of 28% applies. Longterm debt consists of different bonds, all which can be retired at par value but with a 1% penalty cost added to the par value. Shortterm debt is nanced solely by a R25 miElion, 12% annual interest line of credit. The following nancing options are available: A. A rights issue: The company's shares are currently trading for R4.l] and it has 1D DUI] shares outstanding. It is expected that for a full subscription, the subscription price would have to be set at R3.U{i. It is envisaged that 96% of the rights will be taken up by current shareholders and the remaining mitt: by new shareholders. l3. Utilise the line of credit for ali of the nancing. Assume the funds will be borrowed immediateiy. [3. Issue 1Ul3, R113 BUD par value, 14%, convertible bonds at a discount of 2% below par. D. A negotiated R15 million longtemt loan with a bank with a xed interest rate of 13% per annum and capital repayment at the end of the loan, with an option to renew the ioan indefinitely. This loan comes with a covenant that the company's debt ratio is not allowed to exceed [1,5 without the approval of the bank