You have completed a $3-$statement model for Coles, a leading grocery retailer based in Australia. Due to IFRS accounting

rules, the company considers all its Leases $($both Operating and Finance$)$ "Debt" and includes them in its Enterprise Value

bridge and in the calculations for key metrics such as the Return on Capital $($ROC$).$

After building this model, you've run the numbers on a potential minority$-$stake investment in the company and determined

that you might be able to earn a $15\%$ IRR over $5$ years, with a multiple of invested capital $($MOIC$)$ close to $2\mathrm{.}0$x$.$ The calculations

are shown in the table: Which of the following represent$($s$)$ valid reason$($s$)$ to be skeptical of these results for the IRR and multiple of invested capital $($MOIC$)?$ A$)$ The company's lease liabilities keep decreasing over time, even though its revenue, EBITDA debt, and cash are all growing. B$)$ The company's EBITDA multiple expands from about $10$x to $12$x in year $5,$ even though its revenue growth is almost the same and its EBITDA margin improves only slightly; the $4\%$ increase in return on capital may not be enough to justify this multiple expansion. C$)$ The dividends keep increasing over time, and they contribute more than $3\%$ to the IRR figure, which is too much for an investment in a mature$/$stable company like this. D$)$ The Cash Realization stays in about the same range throughout the holding period, which indicates that the company is not becoming more efficient in converting its EBITDA into cash flow from operations. E$)$ All of the above F$)$Answer choices A and B