Financial position calculations: proposal 1 2
Financial position calculations: proposal 2 2
Financial position calculations: proposal 3 2
Adjustments to forecast earnings
Interest payable on additional borrowing and higher coupon 2
Interest saved lower borrowing and lower coupon 1
Return on additional investment 1
Return lost on less investment and profit on sale of non-current assets 1
Gearing and EPS calculations 4
Discussion of the results of the proposals 2–3
Discussion of the implications (e.g. risk, market reaction, etc) 2–3

Max marks 20