[Tega001]

Market price is Po

[Tega001]

Section A and B was quite confusing for me, even the non calculations type questions… I think I did fairly in my sections C. I got the long Npv question and the debt /equity finance question. The Npv was okay. My approach for the debt /equity question

Recalculate pbit, interest and pat for. *current statement
*with debt
*with equity

For current statement, with debt, with equity, calculate
*interest cover
*eps
*P/e ratio
*Po
*terp.

For debt : compare current po and adjusted po
For equity: compare adjusted po and terp
Also come their interest cover

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