41 The following information was derived from the records of Amman Corporation for the year 2020. Amman Corporation has received credit approval from Arab Bank of $75,000,000. The predetermined cost of finance is 8. The relationship between current liabilities and long-term liabilities is depicted around the ratio of 4.2 respectively. Fixed assets equal 40%TA. CA = 35% TA, and intangible assets = 5%TA. Fixed assets amount to $300,000,000. The fixed asset expansion is planned to be 25%. ROTA is 12%. Required: (A) What is the practical DPR to be employed by the corporation in line with the credit line, growth rate, and change in FA as spelled out by Kunt and Maks? (B) What advice that you may give to the Corporation if the Arab Bank dishonors its commitment under DPR equals zero? 41 The following information was derived from the records of Amman Corporation for the year 2020. Amman Corporation has received credit approval from Arab Bank of $75,000,000. The predetermined cost of finance is 8. The relationship between current liabilities and long-term liabilities is depicted around the ratio of 4.2 respectively. Fixed assets equal 40%TA. CA = 35% TA, and intangible assets = 5%TA. Fixed assets amount to $300,000,000. The fixed asset expansion is planned to be 25%. ROTA is 12%. Required: (A) What is the practical DPR to be employed by the corporation in line with the credit line, growth rate, and change in FA as spelled out by Kunt and Maks? (B) What advice that you may give to the Corporation if the Arab Bank dishonors its commitment under DPR equals zero