To please be done in excel: ABC Pty(Ltd) is a manufacturing company that has been listed on the Stock Exchange for the last 15 years. Approximately 35 percent of its sales are to government and 65 percent to private customers. The company has been growing erratically in recent years, but in real terms at a rate on average equal to that of the economy as a whole. Recent analysts reports suggest that the firms rate of growth might increase significantly in the near to mid future because of the governments accelerated infrastructure investment program. However, ABC management believes that the analysts are overoptimistic in this regard and are worried about the effects of increased inflationary pressures. The companys shares, which are largely institutionally held, are currently selling at 14 times earnings. The industry average PE ratio is 12. The companys Return on Equity (ROE) was 17% p.a. compared to the industry average of 23%. The companys most recent total dividend payout was $5m which represented a dividend cover of 2.5 times (the industry average is 2 times). The company has assets of $200 million and a debt to capital ratio of 20 percent (the industry average is 22 percent). ABC is budgeting for growth in the next 12m and needs an additional $25 million in capital over and above additions to retained earnings to support its projected level of business activties. a. Identify the stage of this companys lifecycle and identify the normal sources of funding for such a stage. b. Calculate the companys current Debt/Equity (D/E) ratio. What would it the new D/E ratio be if it raises debt to finance its growth?