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MKL Inc., a publicly traded manufacturing firm, has provided the following financial information in its application for a loan. $ Assets Cash Accounts receivables Inventory
MKL Inc., a publicly traded manufacturing firm, has provided the following financial information in its application for a loan. $ Assets Cash Accounts receivables Inventory 50 130 140 Liabilities and equity Accounts payable Notes payable |Accruals Long-term debt Equity Total liabilities and equity $ 30 90 110 140 550 920 Plant and equipment Total assets 1600 920 = = = Also assume sales = $450, cost of goods sold = $350, taxes = $56, interest payments = $40; the dividend payout ratio is 35 per cent and the market value of equity is equal to the book value. What is the Altman discriminant function value for MKL Inc.? A. 1.72 B. 2.43 C. 2.09 O D.3.32
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