MNO, Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan. Assets Liabilities and Equity Cash $ 20 Accounts Payable $ 30 Accounts Receivables $ 90 Notes Payable $ 90 Inventory $ 90 Accruals $ 30 Long Term Debt $150 Plant and equipment $500 Equity $400 Total Assets $700 Total Liabilities & Equity $700 Also assume sales = $500, cost of goods sold = $360, taxes = $56, interest payments = $40, net income = $44, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value. Requirement: What is the Altman z-score value value for MNO, Inc.? Should a bank extend loan to MNO Inc?
MNO, Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan.
Assets Liabilities and Equity
Cash $ 20 Accounts Payable $ 30
Inventory $ 90 Accruals $ 30
Long Term Debt $150
Plant and equipment $500 Equity $400
Total Assets $700 Total Liabilities & Equity $700
Also assume sales = $500, cost of goods sold = $360, taxes = $56, interest payments = $40, net income = $44, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value.
Requirement: What is the Altman z-score value value for MNO, Inc.? Should a bank extend loan to MNO Inc?
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