Q3: Given below are abstract of the financial information relates to RAJ CO, which has considering raising $ 50 million of new debt finance to support existing business operations. Assume that it is now 31 Dec 2015. RAJ Co has been experiencing trading difficulties due to a continuing depressed level of economic activity: Financial information for recent years ending 31 December RAJ Co. 2015 2014 2013 25.3 26.6 5.5 19.8 29.3 48 24.5 213 Profit before interest and tax Interest charges profit before tax Taxation expense Net profit Debt ratio 73 17.2 47% Dividend and share price information of RAJ CO RAJ Co. Total cash diy paid Share price at end of year Average data on industry -Debt ratio 49% Interest coverage 10 times Required: Prepare a report for the top management. In your report you should (a) Critically analyze and discuss the recent financial performance and financial conditions of RAJ Co and comment on the proposal to raise $50 million of new debt finance (6 marks) (b) State clearly any limitations and assumptions that you made in your calculations. (2 marks) (c) Marks will be awarded for Professional format, structure and presentation of the report. (2 marks) Q3: Given below are abstract of the financial information relates to RAJ CO, which has considering raising $ 50 million of new debt finance to support existing business operations. Assume that it is now 31 Dec 2015. RAJ Co has been experiencing trading difficulties due to a continuing depressed level of economic activity: Financial information for recent years ending 31 December RAJ Co. 2015 2014 2013 25.3 26.6 5.5 19.8 29.3 48 24.5 213 Profit before interest and tax Interest charges profit before tax Taxation expense Net profit Debt ratio 73 17.2 47% Dividend and share price information of RAJ CO RAJ Co. Total cash diy paid Share price at end of year Average data on industry -Debt ratio 49% Interest coverage 10 times Required: Prepare a report for the top management. In your report you should (a) Critically analyze and discuss the recent financial performance and financial conditions of RAJ Co and comment on the proposal to raise $50 million of new debt finance (6 marks) (b) State clearly any limitations and assumptions that you made in your calculations. (2 marks) (c) Marks will be awarded for Professional format, structure and presentation of the report. (2 marks)