c) The following are Firm 'Beta's Balance Sheet (in millions): Also, the beginning retained earnings is $0, the market value of equity is equal to 70% of its book value and the company has a 40% dividend payout ratio. The sales are $1,250 million, the cost of goods sold is $700 million, the depreciation is $120 million and the net income is $350 million. Calculate the 'Altman's Z-score for Firm Beta. Then, based on your answer, decide whether you should approve Firm 'Beta's application to your bank for $8 million of a capital expansion loan. Please show each step of your calculation. Recall the following: Z=1.2X1+1.4X2+3.3X3+0.6X4+1.0X5X1=workingcapital/totalassetsX2=retainedearnings/totalassetsX3=EBIT/totalassetsX4=marketvalueofequity/long-termdebtX5=sales/totalassets Net working capital = current assets current liabilities Current assets = cash + accounts receivable + inventory Current liabilities = accounts payable + accruals + notes payable EBIT= revenues cost of goods sold depreciation Net income = EBIT interest taxes Retained earnings = net income (1 dividend payout ratio )