Question on FI: RAJ Co. (CLO1, 2, 3,& 4) 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 $m 2014 $m 2013 $m Profit before interest and tax 25.3 26.6 29.3 Interest charges 5.5 5.3 4.8 profit before tax 19.8 21.3 24.5 Taxation expense 5.9 6.4 7.3 Net profit 13.9 14.9 17.2 Debt ratio 47% Dividend and share price information of RAJ Co RAJ Co, 2015 $m 2014 $m 2013 $m Total cash div paid 9.5 9.5 9.5 Share price at end of year 4.17 4.59 5.10 Average data on industry Debt ratio 49% Interest coverage 10 times Required: Prepare a report for the top management. In your report you should 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) State clearly any limitations and assumptions that you made in your calculations. (2 marks) Marks will be awarded for Professional format, structure and presentation of the report. (2 marks)