Income statement	Current year	Last year
Revenue	2,000.00	1,856.0
COGS	-1,150.0	-1,089
Gross profit	850.0	767.0
SG&A	-269.0	-243.0
Add back depreciation	60.0	74.2
Reverse expectation	28.0	-12.0
EBITDA	689.0	586.2
Deduct deprecation	-80.0	-74.2
EBIT	609.0	512.0
Add back deprecation	-28.0	12.0
Opening profit	581.0	524.0
Interest	-82.0	-76.0
Pre- tax profit	499.0	448.0
Tax	-99.0	-89.6
Profit for the year (Net profit)	399.2	358.4

Balance statement	Current year	Last year
Cash	100.00	92.8
Receivable	-250.0	220.0
Investment	150.0	135.0
Other current assets	50.0	46.4
Total current assets	550.0	494.2
Property, plant, and equipment	1,640.0	1,520.0
Intangible assets	10.0	76.8
Total non-current assets	1,650.0	1,596.8
Total assets	2,200.0	2,090.0
Payables	120.0	105.0
Short-term debt	55.0	50.0
Current portion of long-term debt	50.0	125.0
Other current liabilities	24.0	21.0
Total current liabilities	249.0	301.0
long-term debt	275.0	210.0
Total non-current liabilities	275	210.0
Total liabilities	524.0	511.0
Total equity	1,676.0	1,579.0
Total liabilities and equity	2,200.0	2,090.0
Net operating working capital	280.0	250.0
Leverage (Net debt\EBITDA)	0.41x	0.50x
Coverage (EBIT\interest)	7.43 x	6.74x
Liquidity (quick ratio)	1.61x	1.19x
Gearing (total debt\total equity)	41.3%	50.9%
Cash Flow Statement extracts
Profit for the year (Net profit)	399.2
Add back depreciation	80.0
Charge in working capital	-30.0
Cash flow from operating	449.2
Funds from operation (FFO)	479.2
Capital expenditure	-200.0
Dividend paid	-302.2

1. Dubai Auto group has a board agreement that restricts EBIT/Interest expense to more than 6.0x. Given that constraint, and assuming the firm could borrow new money for 7.00%, what is the maximum additional debt the firm could borrow, based on the current year's EBIT and interest expense?

1. 101.5
2. 278.6
3. 469.0
4. 1,450.0

2. Dubai Autos group is requesting an increased working capital facility to allow the firm to hold more used cars in inventory. What is the most appropriate facility structure to accommodate this request?

1. Amortizing term loan.
2. Receivable financing.
3. Revolving credit.
4. Trade finance.

3. Based on the strength of the security, which of the following assets of Dubai Autos Group Ltd would be most likely to provide the strongest protection if taken as security?
   1. Intangibles: long terms exclusive distribution agreements for the GCC with leading car manufacturers.
   2. Inventory: a mix of new and used cars.
   3. Other current assets: largely pre-payment.
   4. PP&E: a range of dealership premises located across the UAE.

4. What happened to Dubai Auto groups key credit metrics during the current year?

1. Leverage improved, coverage improved, liquidity improved, and gearing improved.
2. Leverage improved, coverage weakened, liquidity weakened, and gearing weakened.
3. Leverage weakened, coverage improved, liquidity improved, and gearing improved.
4. Leverage weakened, coverage weakened, liquidity weakened, and gearing weakened.

5. What was Dubai Autos Groups credit-free cash flow for the current year?

1. -103.0
2. -53.0
3. -23.0
4. 177.0