Calculate good landscapings cost of equity

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Question 1: Compute the accounting ratios for FY 2012 to 2014 and evaluate Good Landscaping's liquidity, profitability, asset utilisation and financial leverage.

Question 2: Calculate Good Landscaping's cost of equity, cost of debt and weighted average cost of capital (WACC).

Question 3: Calculate the net present value (NPV) and examine whether Good Landscaping should proceed with this growth strategy.

Question 4: Analyse and comment on the dividend policy over the last 5 years.

Question 5: In order to finance the expansion plan, the Board is considering several options such as issue shares for $ 9 million, borrow funds for $9 million and reduce dividend payout to 40%. Compare the implications of various options and recommend an appropriate financing alternative.


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Reference no: EM13855126

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