QUESTION # 2 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 S 20 S 90 $ 90 S 30 $ 90 $ 30 Cash Accounts Payable Notes Payable Accruals Accounts Receivables Inventory 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 www Inc?
QUESTION # 2 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 S 20 S 90 $ 90 S 30 $ 90 $ 30 Cash Accounts Payable Notes Payable Accruals Accounts Receivables Inventory 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 www Inc?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:QUESTION # 2
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
$ 20
$ 90
$ 90
$ 30
$ 90
$ 30
Cash
Accounts Payable
Notes Payable
Accruals
Accounts Receivables
Inventory
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
ww m
Inc?
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