Question: 1. Present recommendations on whether TNS will have sufficient capital to pursue the growth project if it decides to stay private: In doing so, use the actual capital structure and cash balance of TNS over time under Scenario (i) as a starting point, and overlay the incremental funding requirements for:
• The exit of the 15% shareholder(one of the owners)? [What is the best way to facilitate this and what are the tax implications of your recommendation?] and
• The funding of the growth project.
In view of these incremental funding requirements, and assuming TNS retains the same dollar payout of dividends as in Scenario (i), what long term gearing level would TNS need to adopt if it remains private?