Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer the Question below Please Urgent Question Completion Status: 6 7 10 11 12 13 15 The Earnings before interest and tax are equal to
Answer the Question below Please Urgent
Question Completion Status: 6 7 10 11 12 13 15 The Earnings before interest and tax are equal to AED 212,008,000 on sales of AED 818,111,000. The number of shares on issue is equal to 555,000,000 shares the share price being AED 3.07. The firm is requesting a loan of AED 90,000,000 to finance its working capital. The Altman relationship: Z = 1.2%, +1.4x, +3.3X, +0,6X, + 1X5 Current assets - current liabilities X = Total Assets Retained Earnings X = Total Assets EBIT X3 = Total Assets Market Value of Equity x = Book Value of total Liabilities Net Sales Total Assets Questions: 1. Using Altman Z score, what is the indication of credit risk? 2. Having carried out the Altman Z score analysis, what would be your final decision related to the loan application. TTTT Paragraph A Arial A 3 (12pt) Question Completion Status: 6 7 10 11 12 13 15 The Earnings before interest and tax are equal to AED 212,008,000 on sales of AED 818,111,000. The number of shares on issue is equal to 555,000,000 shares the share price being AED 3.07. The firm is requesting a loan of AED 90,000,000 to finance its working capital. The Altman relationship: Z = 1.2%, +1.4x, +3.3X, +0,6X, + 1X5 Current assets - current liabilities X = Total Assets Retained Earnings X = Total Assets EBIT X3 = Total Assets Market Value of Equity x = Book Value of total Liabilities Net Sales Total Assets Questions: 1. Using Altman Z score, what is the indication of credit risk? 2. Having carried out the Altman Z score analysis, what would be your final decision related to the loan application. TTTT Paragraph A Arial A 3 (12pt)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started