Please explain how to answer these questions, including the formulas I should use, the steps I should follow, and which financial statements to look at if relevant. 1.5 Calculate the sustainable growth rate for Top Harvest using the financial results of 2020/21 and comment on how Top Harvest could improve their sustainable growth rate in the future. 1.7 Calculate the Economic Value Added for Top Harvest (using Total Assets and not Net Assets) and comment on the performance of the business and how they could improve the EVA 1.6 Calculate the Weighted Average Cost of Capital for Top Harvest using the following information:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Please explain how to answer these questions, including the formulas I should use, the steps I should follow, and which financial statements to look at if relevant.

1.5 Calculate the sustainable growth rate for Top Harvest using the financial results of 2020/21 and comment on how Top Harvest could improve their sustainable growth rate in the future.

1.7 Calculate the Economic Value Added for Top Harvest (using Total Assets and not Net Assets) and comment on the performance of the business and how they could improve the EVA

1.6 Calculate the Weighted Average Cost of Capital for Top Harvest using the following information: 

 

ASSUMPTION
- Cost of Debt
-
5
- Tax Rate
10.0 %
Cost of Equity 17.0%
28.0%
Transcribed Image Text:ASSUMPTION - Cost of Debt - 5 - Tax Rate 10.0 % Cost of Equity 17.0% 28.0%
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