MS Inc., a publicly traded manufacturing firm, 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 Long-term debt 30 150 Plant and equipment 500 Equity 400 Total assets 700 Total liabilities and equity 700 Also assume sales = $500, cost of goods sold = $360, taxes = $56, interest payments = $40 and net income = $44; the dividend payout ratio is 50 per cent and the market value of equity is equal to the book value. a) What is the Altman discriminant function value for MS Inc.? (6 marks) b) Should you approve MS Inc.'s application to your bank for a $500 capital expansion loan? (3 marks) (c) If sales for MS were $300, the market value of equity was only half of book value, and the cost of goods sold and interest were unchanged, what would be the net income for MS? Assume the tax credit can be used to offset other tax liabilities incurred by other divisions of the firm. Would your credit decision change? (6 marks)