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.
Attachment:- question.doc