which. part?

Orchid SA Case Study 1. Orchid SA (USA) manufactures plant-based vegeta toodstutt titteneat Madina in Spain. It is a quoted company with a wide diversity of shareholders The Board of Directors is planning to set 19 motwance for a major expansion of its manufacturing capaciry due to a massive upturn in demand for its foodstuffs. This will involve acquiring additional warehouse space, two new machines and hiring over 100 new employees. The CFO has proposed using either a rights issue at 120% discount to market price or an issue of 25% bonds In its most recent released set of financial statements, the Chairperson stated in her report that OSA's key corporate objectives are te amar shared and alle cather person Recent extracts from the annual financial statements of OSA are as follows 2019 20.30 Em 2018 Em 2017 Em Em 30.80 26.40 10.76 6.05 21.01 825 Revenue Operating procit Protit after corporate taxation Dividende Ordinary share capital (par value 1.00) Retained profit 10% bonde redeemable in 2027 (par value) 9.35 5.17 200 4.51 18.48 7:45 3.26 1.7% 6.05 5.61 22.00 6.05 6,05 1.76 6.05 8.36 22.00 15.07 22.00 11:44 22.00 Share price 9.50 6.31 3,69 2.94 The 10% bonds have consistently traded at 105% of their par value from 2017 to 2020 OSA's cost of equity has remained around 17% for the same period. The following average statistics for the period 2017 to 2020 are available from the Vegetarian Foodstuff Manufacturing (FM) trade body: Return on capital employed Return on equity 279 21% Interest CONCE Financial gearing (using market values) 9.0 times 30% The general level of inflation over the period 2017 to 2020 has averaged 2.7% per real Required: Using whatever financial and other analysis you consider appropriate, evaluate the financial performance of OSA and assess whether the company has achieved its stated corporate objectives. Show all working (14 marlos - maximum word count 800 words) If the new finance is raised via the proposed rights issue and the major expansion of business has not yet begun, calculate the theoretical es-tights share price and comment on the impact of the right issue on the company's share price, its earnings per share and its financial gearing (7 marks - maximum word count 400 words) Critically assess the relative merits of a rights issue and an issue of bonds as ways of raising the finance for the company's expansion (9 marks - maximum word count 500 words) Orchid SA Case Study 1. Orchid SA (USA) manufactures plant-based vegeta toodstutt titteneat Madina in Spain. It is a quoted company with a wide diversity of shareholders The Board of Directors is planning to set 19 motwance for a major expansion of its manufacturing capaciry due to a massive upturn in demand for its foodstuffs. This will involve acquiring additional warehouse space, two new machines and hiring over 100 new employees. The CFO has proposed using either a rights issue at 120% discount to market price or an issue of 25% bonds In its most recent released set of financial statements, the Chairperson stated in her report that OSA's key corporate objectives are te amar shared and alle cather person Recent extracts from the annual financial statements of OSA are as follows 2019 20.30 Em 2018 Em 2017 Em Em 30.80 26.40 10.76 6.05 21.01 825 Revenue Operating procit Protit after corporate taxation Dividende Ordinary share capital (par value 1.00) Retained profit 10% bonde redeemable in 2027 (par value) 9.35 5.17 200 4.51 18.48 7:45 3.26 1.7% 6.05 5.61 22.00 6.05 6,05 1.76 6.05 8.36 22.00 15.07 22.00 11:44 22.00 Share price 9.50 6.31 3,69 2.94 The 10% bonds have consistently traded at 105% of their par value from 2017 to 2020 OSA's cost of equity has remained around 17% for the same period. The following average statistics for the period 2017 to 2020 are available from the Vegetarian Foodstuff Manufacturing (FM) trade body: Return on capital employed Return on equity 279 21% Interest CONCE Financial gearing (using market values) 9.0 times 30% The general level of inflation over the period 2017 to 2020 has averaged 2.7% per real Required: Using whatever financial and other analysis you consider appropriate, evaluate the financial performance of OSA and assess whether the company has achieved its stated corporate objectives. Show all working (14 marlos - maximum word count 800 words) If the new finance is raised via the proposed rights issue and the major expansion of business has not yet begun, calculate the theoretical es-tights share price and comment on the impact of the right issue on the company's share price, its earnings per share and its financial gearing (7 marks - maximum word count 400 words) Critically assess the relative merits of a rights issue and an issue of bonds as ways of raising the finance for the company's expansion (9 marks - maximum word count 500 words)