no net profit

no inventory

no book value of liabilities

Part way to 1 Cite two mits disadvantage of the expert systems approach to analyse credit risk Explain why econometric methods carnot be the sole basis for decision-making in the analysis oferi Part 2: Problem Solving A financial services provider that provides computer software approaches you. The company started off as a small private company and has grown strongly over the past ten years and listed on the Australian Stock Exchange. The company has businesses in many offshore locations, all of which are well-developed capital markets in some parts of the world, the company has near-monopoly markets. As part of its strategy, the company we cositions rather than growth to continue to expand the business. While the business is software based relies on continued activity in the financial markets. The company has had the same management over the past fifteen years and the senior management team are shareholders in the company The company rated and its bonded 13 per cent above the comparable government bond rates. These rates are for a 1-year period Page 1 ofs The condensed financial accounts are as follows: SM Total current Totale 1,005.4 1971.2 Total current les Total noncurrent abilities 247 Total 4410 Shareholders' equity Retained earnings Totality 6302 Tatalable and easy 021.2 Earnings before interest and taxe $15.60.000 on sales of $742.613,000. The firm is resting loan of 150 million to further to Ratio industry 1. Current ratio) 4 Debe tofauti Questions: 1 Carry out acreditation in expert basis Character Capital Cash capacity (the above cited ratios Condition 2 Carry out a credits on a market remium a. Calculate the probably dumingala maturing in 1 year Calculate the risk premium if you that the recorreth oldefault is 20 Suppose that the company requested a loan for two years Government bond rate for 2 years is 6% and company bond rate for 2 years is. S. Calculate the comitive probability of default use the comet method to the dhe lending institution foes the maximum acceptable cumulative probability of deats 2%, siis to grant the loan to the com Using Altman Zscore, what is the indication of credit risk? 4 Having carried out the above analysis, carefully outline the benefits and disadvantages of lending to this company. What would be your final decision Part way to 1 Cite two mits disadvantage of the expert systems approach to analyse credit risk Explain why econometric methods carnot be the sole basis for decision-making in the analysis oferi Part 2: Problem Solving A financial services provider that provides computer software approaches you. The company started off as a small private company and has grown strongly over the past ten years and listed on the Australian Stock Exchange. The company has businesses in many offshore locations, all of which are well-developed capital markets in some parts of the world, the company has near-monopoly markets. As part of its strategy, the company we cositions rather than growth to continue to expand the business. While the business is software based relies on continued activity in the financial markets. The company has had the same management over the past fifteen years and the senior management team are shareholders in the company The company rated and its bonded 13 per cent above the comparable government bond rates. These rates are for a 1-year period Page 1 ofs The condensed financial accounts are as follows: SM Total current Totale 1,005.4 1971.2 Total current les Total noncurrent abilities 247 Total 4410 Shareholders' equity Retained earnings Totality 6302 Tatalable and easy 021.2 Earnings before interest and taxe $15.60.000 on sales of $742.613,000. The firm is resting loan of 150 million to further to Ratio industry 1. Current ratio) 4 Debe tofauti Questions: 1 Carry out acreditation in expert basis Character Capital Cash capacity (the above cited ratios Condition 2 Carry out a credits on a market remium a. Calculate the probably dumingala maturing in 1 year Calculate the risk premium if you that the recorreth oldefault is 20 Suppose that the company requested a loan for two years Government bond rate for 2 years is 6% and company bond rate for 2 years is. S. Calculate the comitive probability of default use the comet method to the dhe lending institution foes the maximum acceptable cumulative probability of deats 2%, siis to grant the loan to the com Using Altman Zscore, what is the indication of credit risk? 4 Having carried out the above analysis, carefully outline the benefits and disadvantages of lending to this company. What would be your final decision