(a)[5]
Refer to Appendix 1. Calculate the effect of a 15% rise in raw materials prices for Factory S on its operating profit margin in 2019, assuming revenue and all other cost data stay unchanged.
(b)[3]
Refer to Table 1 and lines (37–43). Calculate AC’s gearing ratio that would arise from the project to expand Factory S.
(c)[12]
Use your answers from 4(a) and the other data. Evaluate whether the Lukwesa family should convert the business into a public limited company.