ath Enterprise is owned and managed by favorite client in the Gulf financial market. The ollowing...

 

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ath Enterprise is owned and managed by favorite client in the Gulf financial market. The ollowing information was derived from the records of the company for the year 2020: Net sales Depreciation Business profit tax Interest rate $18,500,000 1,980,000 16% 7% 14,500,000 38% 15% Total assets Fixed assets intensity Profit margin 620,000 800,000 Cash and cash equivalents Long term investments Current assets Intangible assets ? 620,000 49% Dividend payout ratio Equity 5,200,000 58% Gross profit percentage The enterprise is maintaining good relations with suppliers and only 78% of its debt is subject to cost of finance of 6%. Bath Enterprise has produced a well-documented finance case to Abu Dhabi First Bank. Required: 1. Based on the CART Model, you have been requested by Abu Dhabi First Bank to give a professional opinion on the credit worthiness of Bath enterprise (Gradual Approach). 2. Produce a brief analytical report on the degree of deviation from CART ratios and your professional idea on remedial actions. 3. What would be the case if the company decided to keep the profit retention rate equals 250 percent of the DPR. 4.In what sense you could observe points of agreement between CART and Bennet models. ath Enterprise is owned and managed by favorite client in the Gulf financial market. The ollowing information was derived from the records of the company for the year 2020: Net sales Depreciation Business profit tax Interest rate $18,500,000 1,980,000 16% 7% 14,500,000 38% 15% Total assets Fixed assets intensity Profit margin 620,000 800,000 Cash and cash equivalents Long term investments Current assets Intangible assets ? 620,000 49% Dividend payout ratio Equity 5,200,000 58% Gross profit percentage The enterprise is maintaining good relations with suppliers and only 78% of its debt is subject to cost of finance of 6%. Bath Enterprise has produced a well-documented finance case to Abu Dhabi First Bank. Required: 1. Based on the CART Model, you have been requested by Abu Dhabi First Bank to give a professional opinion on the credit worthiness of Bath enterprise (Gradual Approach). 2. Produce a brief analytical report on the degree of deviation from CART ratios and your professional idea on remedial actions. 3. What would be the case if the company decided to keep the profit retention rate equals 250 percent of the DPR. 4.In what sense you could observe points of agreement between CART and Bennet models.