Depreciation Amortizaton Depreciation and Amortization EBITD Interest Earnings Before Taxes Taxes (40%) Net Income Before preferred Dividends Preferred Dividends Net Income Common Dividends Addition to retained Earnings 110 0 110 790 100 690 276 414 4 $ 57.5 $ 100 90 0 0 100 90 600 660 88 60 512 600 204.8 240 307.2 360 4 4 410.0 $ 303.2 $ 57.5 53 352.50 $ 245.70 $ 356.0 303.0 Per Share Date Common Stock Price 2021 $ 2020 $ 28.0 $ 2019 23.00 $ 26.00 Earnings Per Share (EPS) Dividend Per Share (DPS) Book Value Per Share (BVPS) Cash Flow Per Share ??? ???? ???? ???? $ $ $ $ 6.06 $ 1.15 21.72 $ 8.06 $ 7.12 1.06 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12, Times New Roman, 1.5 line spaces (excluding the reference page) to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company (liquidity, profitability, leverage, asset management, market value- 2 to 3 ratios for each category). The report should comment on whether the firm has a great chance of success with the loan or whether alternative forms of financing should be sought. Give justification for your answer. 2019 30 Cash and Cash Equivalents Short-Term Investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 130 220 BnB Construction Inc. Balance Sheet (Miliom of Dollars 2021 2021 2020 2019 Est Liabilities 2000 EN 15 10 Accounts payable 135 60 10 Overdrafts 115 110 420 375 315 Accruals 260 140 700 615 415 Total Current Liabilities 490 310 1,145 1,000 310 Long-Term Bonds and 754 New Loan 1884 1.190 870 Total Debt 1790 1,064.00 Preferred Stock 40 40 Common Stock 130 110 Retained Earings 1069 956 Total Common Equity 1199 1086 $ $ $ Total abilities and S 5 1,029 2,190 1,600 Equity 1,029 2.190 5B0 800 40 110 710 840 $ 1,650 Total Assets Est. Estimate BnB Construction Inc. Income Statement Millions of Dollar 2021 Est. 2020 2019 Net Sales 4,000 3.000 Operating Costs 3,100 2.300 2.100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortivaton 0 o 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 60 Earnings Before Taxes 690 512 600 Tanes (40X1 276 2048 240 Net Income Before preferred Dividends 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 4100$ 303.25 Common Dividends 575 57.5 53 Addition to retained Earnings $ 35250 $ 245.70$ 3560 3030 2020 Per Share Date Common Stock Price 2021 $ 2019 23.00 $ 280S 26.00 Earnings Per Share (EPS) Dividend Per Share (OPS) Book Value Per Share (VPS) Cash Flow Per Share 297 777 7777 2777 $ $ $ $ 606 115$ 21.725 B.065 7.12 106 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company liquidity, profitability, leverage, asset management, market value- 2 to ratios for each category. The report BB Caribbean Inc. (B) is a leading construction company founded in 2001 and is based in Jamaica, The company has within recent years been experiencing increases in revenues from its construction related services such as design, build, expansion and remodeling and emergency services. It's main line of business is from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few other Caribbean countries. Since the growth of the tourism sector in the Caribbean, Be Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar service around the Caribbean region Business overseas contributes to 40% of the company's revenue, while the other 60% comes mainly from works done in the domestic market The COVID-19 pandemic has cauted a slowdown in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO of the company is optimistic that there will be a turnaround in operations in 2021, and is therefore considering contracting a loan of $500.0 Million from its local bank to help rebuild its lead position in the market and to expand its line of business to include the sales of heavy equipment. The company has over the years relied mainly on Issuing long-term bonds to finance its capital projects. As of today, the firm has 500 million shares of common stock outstanding You are hired as the Chief Financial Controller of the company to advise the CEO and board of the company of the current financial health of the company and to assist them in determining whether they would be successful with the newloan. You began by gathering the following financial statements and other data about the fem 2021 Assets 2020 2019 115 30 110 420 115 260 Cash and Cash Equivalents Short-Term investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 140 310 130 220 BnB Construction Inc. Balance Sheet (Milions of dollars 2021 2020 2019 Est Liabilities 15 30 15 Accounts payable 10 Overdrafts 375 315 Accruals 700 615 415 Total Current Liabilities 1 145 1,000 810 Long-Term Bonds and New loan 1884 1.190 Total Debt Preferred Stock Common Stock Retained Camings Total Common Equity $ $ $ Total abilities and 3,029 2.190 1,680 Equity 1300 754 580 870 10 800 10 130 1060 1199 $ 3,029 1,06400 40 130 956 1086 $ 2,190 130 710 Total Assets $ 1,680 Est. Estimate Net Sales Operating costs EBITD Depreciation Amortization Depreciation and Amortization BnB Construction Inc. Income Statement Millions of dollars) 2021 Est. 2020 4,000 3,000 3,100 2,300 900.00 700 110 100 2013 2.850 2.100 750 90 o 90 110 100 2019 30 Cash and Cash Equivalents Short-Term Investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 130 220 BnB Construction Inc. Balance Sheet (Miliom of Dollars 2021 2021 2020 2019 Est Liabilities 2000 EN 15 10 Accounts payable 135 60 10 Overdrafts 115 110 420 375 315 Accruals 260 140 700 615 415 Total Current Liabilities 490 310 1,145 1,000 310 Long-Term Bonds and 754 New Loan 1884 1.190 870 Total Debt 1790 1,064.00 Preferred Stock 40 40 Common Stock 130 110 Retained Earings 1069 956 Total Common Equity 1199 1086 $ $ $ Total abilities and S 5 1,029 2,190 1,600 Equity 1,029 2.190 5B0 800 40 110 710 840 $ 1,650 Total Assets Est. Estimate BnB Construction Inc. Income Statement Millions of Dollar 2021 Est. 2020 2019 Net Sales 4,000 3.000 Operating Costs 3,100 2.300 2.100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortivaton 0 o 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 60 Earnings Before Taxes 690 512 600 Tanes (40X1 276 2048 240 Net Income Before preferred Dividends 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 4100$ 303.25 Common Dividends 575 57.5 53 Addition to retained Earnings $ 35250 $ 245.70$ 3560 3030 2020 Per Share Date Common Stock Price 2021 $ 2019 23.00 $ 280S 26.00 Earnings Per Share (EPS) Dividend Per Share (OPS) Book Value Per Share (VPS) Cash Flow Per Share 297 777 7777 2777 $ $ $ $ 606 115$ 21.725 B.065 7.12 106 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company liquidity, profitability, leverage, asset management, market value- 2 to ratios for each category. The report Depreciation Amortizaton Depreciation and Amortization EBITD Interest Earnings Before Taxes Taxes (40%) Net Income Before preferred Dividends Preferred Dividends Net Income Common Dividends Addition to retained Earnings 110 0 110 790 100 690 276 414 4 $ 57.5 $ 100 90 0 0 100 90 600 660 88 60 512 600 204.8 240 307.2 360 4 4 410.0 $ 303.2 $ 57.5 53 352.50 $ 245.70 $ 356.0 303.0 Per Share Date Common Stock Price 2021 $ 2020 $ 28.0 2019 23.00 $ 26.00 $ Earnings Per Share (EPS) Dividend Per Share (DPS) Book Value Per Share (BVPS) Cash Flow Per Share ??? ???? ???? ???? un 6.06 $ 1.15$ 21.72 $ 8.06 $ 7.12 1.06 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page) to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company (liquidity, profitability, leverage, asset management, market value- 2 to 3 ratios for each category). The report should comment on whether the firm has a great chance of success with the loan or whether alternative forms of financing should be sought. Give justification for your answer. Depreciation Amortizaton Depreciation and Amortization EBITD Interest Earnings Before Taxes Taxes (40%) Net Income Before preferred Dividends Preferred Dividends Net Income Common Dividends Addition to retained Earnings 110 0 110 790 100 690 276 414 4 $ 57.5 $ 100 90 0 0 100 90 600 660 88 60 512 600 204.8 240 307.2 360 4 4 410.0 $ 303.2 $ 57.5 53 352.50 $ 245.70 $ 356.0 303.0 Per Share Date Common Stock Price 2021 $ 2020 $ 28.0 $ 2019 23.00 $ 26.00 Earnings Per Share (EPS) Dividend Per Share (DPS) Book Value Per Share (BVPS) Cash Flow Per Share ??? ???? ???? ???? $ $ $ $ 6.06 $ 1.15 21.72 $ 8.06 $ 7.12 1.06 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12, Times New Roman, 1.5 line spaces (excluding the reference page) to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company (liquidity, profitability, leverage, asset management, market value- 2 to 3 ratios for each category). The report should comment on whether the firm has a great chance of success with the loan or whether alternative forms of financing should be sought. Give justification for your answer. 2019 30 Cash and Cash Equivalents Short-Term Investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 130 220 BnB Construction Inc. Balance Sheet (Miliom of Dollars 2021 2021 2020 2019 Est Liabilities 2000 EN 15 10 Accounts payable 135 60 10 Overdrafts 115 110 420 375 315 Accruals 260 140 700 615 415 Total Current Liabilities 490 310 1,145 1,000 310 Long-Term Bonds and 754 New Loan 1884 1.190 870 Total Debt 1790 1,064.00 Preferred Stock 40 40 Common Stock 130 110 Retained Earings 1069 956 Total Common Equity 1199 1086 $ $ $ Total abilities and S 5 1,029 2,190 1,600 Equity 1,029 2.190 5B0 800 40 110 710 840 $ 1,650 Total Assets Est. Estimate BnB Construction Inc. Income Statement Millions of Dollar 2021 Est. 2020 2019 Net Sales 4,000 3.000 Operating Costs 3,100 2.300 2.100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortivaton 0 o 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 60 Earnings Before Taxes 690 512 600 Tanes (40X1 276 2048 240 Net Income Before preferred Dividends 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 4100$ 303.25 Common Dividends 575 57.5 53 Addition to retained Earnings $ 35250 $ 245.70$ 3560 3030 2020 Per Share Date Common Stock Price 2021 $ 2019 23.00 $ 280S 26.00 Earnings Per Share (EPS) Dividend Per Share (OPS) Book Value Per Share (VPS) Cash Flow Per Share 297 777 7777 2777 $ $ $ $ 606 115$ 21.725 B.065 7.12 106 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company liquidity, profitability, leverage, asset management, market value- 2 to ratios for each category. The report BB Caribbean Inc. (B) is a leading construction company founded in 2001 and is based in Jamaica, The company has within recent years been experiencing increases in revenues from its construction related services such as design, build, expansion and remodeling and emergency services. It's main line of business is from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few other Caribbean countries. Since the growth of the tourism sector in the Caribbean, Be Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar service around the Caribbean region Business overseas contributes to 40% of the company's revenue, while the other 60% comes mainly from works done in the domestic market The COVID-19 pandemic has cauted a slowdown in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO of the company is optimistic that there will be a turnaround in operations in 2021, and is therefore considering contracting a loan of $500.0 Million from its local bank to help rebuild its lead position in the market and to expand its line of business to include the sales of heavy equipment. The company has over the years relied mainly on Issuing long-term bonds to finance its capital projects. As of today, the firm has 500 million shares of common stock outstanding You are hired as the Chief Financial Controller of the company to advise the CEO and board of the company of the current financial health of the company and to assist them in determining whether they would be successful with the newloan. You began by gathering the following financial statements and other data about the fem 2021 Assets 2020 2019 115 30 110 420 115 260 Cash and Cash Equivalents Short-Term investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 140 310 130 220 BnB Construction Inc. Balance Sheet (Milions of dollars 2021 2020 2019 Est Liabilities 15 30 15 Accounts payable 10 Overdrafts 375 315 Accruals 700 615 415 Total Current Liabilities 1 145 1,000 810 Long-Term Bonds and New loan 1884 1.190 Total Debt Preferred Stock Common Stock Retained Camings Total Common Equity $ $ $ Total abilities and 3,029 2.190 1,680 Equity 1300 754 580 870 10 800 10 130 1060 1199 $ 3,029 1,06400 40 130 956 1086 $ 2,190 130 710 Total Assets $ 1,680 Est. Estimate Net Sales Operating costs EBITD Depreciation Amortization Depreciation and Amortization BnB Construction Inc. Income Statement Millions of dollars) 2021 Est. 2020 4,000 3,000 3,100 2,300 900.00 700 110 100 2013 2.850 2.100 750 90 o 90 110 100 2019 30 Cash and Cash Equivalents Short-Term Investments Accounts Receivable Inventories Total Current Assets Net Plant and Equipment 130 220 BnB Construction Inc. Balance Sheet (Miliom of Dollars 2021 2021 2020 2019 Est Liabilities 2000 EN 15 10 Accounts payable 135 60 10 Overdrafts 115 110 420 375 315 Accruals 260 140 700 615 415 Total Current Liabilities 490 310 1,145 1,000 310 Long-Term Bonds and 754 New Loan 1884 1.190 870 Total Debt 1790 1,064.00 Preferred Stock 40 40 Common Stock 130 110 Retained Earings 1069 956 Total Common Equity 1199 1086 $ $ $ Total abilities and S 5 1,029 2,190 1,600 Equity 1,029 2.190 5B0 800 40 110 710 840 $ 1,650 Total Assets Est. Estimate BnB Construction Inc. Income Statement Millions of Dollar 2021 Est. 2020 2019 Net Sales 4,000 3.000 Operating Costs 3,100 2.300 2.100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortivaton 0 o 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 60 Earnings Before Taxes 690 512 600 Tanes (40X1 276 2048 240 Net Income Before preferred Dividends 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 4100$ 303.25 Common Dividends 575 57.5 53 Addition to retained Earnings $ 35250 $ 245.70$ 3560 3030 2020 Per Share Date Common Stock Price 2021 $ 2019 23.00 $ 280S 26.00 Earnings Per Share (EPS) Dividend Per Share (OPS) Book Value Per Share (VPS) Cash Flow Per Share 297 777 7777 2777 $ $ $ $ 606 115$ 21.725 B.065 7.12 106 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company liquidity, profitability, leverage, asset management, market value- 2 to ratios for each category. The report Depreciation Amortizaton Depreciation and Amortization EBITD Interest Earnings Before Taxes Taxes (40%) Net Income Before preferred Dividends Preferred Dividends Net Income Common Dividends Addition to retained Earnings 110 0 110 790 100 690 276 414 4 $ 57.5 $ 100 90 0 0 100 90 600 660 88 60 512 600 204.8 240 307.2 360 4 4 410.0 $ 303.2 $ 57.5 53 352.50 $ 245.70 $ 356.0 303.0 Per Share Date Common Stock Price 2021 $ 2020 $ 28.0 2019 23.00 $ 26.00 $ Earnings Per Share (EPS) Dividend Per Share (DPS) Book Value Per Share (BVPS) Cash Flow Per Share ??? ???? ???? ???? un 6.06 $ 1.15$ 21.72 $ 8.06 $ 7.12 1.06 16.80 8.92 Required: As the newly-appointed Chief Financial Officer of BnB Construction Inc. write a report of no more than three pages, font size 12. Times New Roman, 1.5 line spaces (excluding the reference page) to the board which discusses whether the company is likely to be successful if it approaches its bank Republic Limited for a loan to undertake the expansion project at a cost of $500.0 million. Your discussion should include a critical analysis of the current financial position and recent financial performance of the company (liquidity, profitability, leverage, asset management, market value- 2 to 3 ratios for each category). The report should comment on whether the firm has a great chance of success with the loan or whether alternative forms of financing should be sought. Give justification for your
