BnB Caribbean Inc. (BnB) 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, BnB Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar services around the Caribbean region. Business overseas contributes to 40% of the company’s revenues, while the other 60% comes mainly from works done in the domestic market. The COVID-19 pandemic has caused 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 50.0 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 new loan. BnB Construction Inc. Balance Sheet (Millions of Dollars)  Assets 2021 Est 2020 2019 Liabilities 2021 Est 2020 2019 Cash and Cash Equivalents 15 10 15 Accounts payable 115 60 30 Short-Term investments 10 0 65 Overdrafts 115 110 60 Accounts Receivable 420 375 315 Accruals 260 140 130 Inventories 700 615 415 Total Current Liabilities 490 310 220 Total Current Assets 1,145 1,000 810 Long-Term Bonds and New Loan 1300 754 580 Net Plant and Equipment 1884 1,190 870 Total Debt   1790 1,064.00 800     Preferred stock    40 Common stock    130                                40                      40 130                    130     Retained Earnings   1069               956                    710     Total Common         1199              Equity 1086                  840         Total Assets $ 3,029 $ 2,190 $ 1,680 Total Liabilities and Equity $ 3,029 $ 2,190 $ 1,680   BnB Construction Inc. Income Statement (Millions of Dollars)                                                              2021                  2020                                    2019 Net Sales 4,000 3,000 2,850 Operating Costs 3,100 2,300 2,100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortizaton 0 0 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 88 60 Earnings Before Taxes 690 512 600 Taxes (40%) 276 204.8 240 Net Income Before preferred Dividends 414 307.2 360 Preferred Dividends 4 4 4 Net Income $ 410.0 $ 303.2 $ 356.0 Common Dividends 57.5 57.5 53 Addition to retained Earnings $ 352.50 $ 245.70 $ 303.0 Per Share Date 2021 2020 2019 Common Stock Price $ 28.0 $ 23.00 $ 26.00 Earnings Per Share (EPS) ??? $ 6.06 $ 7.12 Dividend Per Share (DPS) ???? $ 1.15 $ 1.06 Book Value Per Share (BVPS) ???? $ 21.72 $ 16.80 Cash Flow Per Share ???? $ 8.06 $ 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. Other guidance notes: Introduction should be no more than 3 to 4 lines. Complete BnB’s estimated per share data for the year ending December 31 2021, before proceeding with the analysis of the firm’s performance. (Completed Per Share Data should be placed in your report as part of your reference). You may include any other ratios in your analysis table which will assist in strengthening your position. (Remain mindful of the page limit) Present calculated ratios in a table format along with the industry ratios in this same table.  A brief conclusion of no more than six to ten lines should be made clearly advising the board of your position. Comments on Financial Performance and Financial Position Liquidity Profitability Leverage Asset Management Market Value Chance of Success of Application of the Loan Conclusion