(a)[6]
Use Appendix 1 and any other information. Calculate the:
- PAC's return on capital employed in 2019 [3]
- forecast gearing ratio in 2020 if the four pizza vans are bought with a bank loan [3]
(b)[12]
Use your answers to 2(a) and any other information. Discuss whether PAC should finance the pizza van project with a bank loan.