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Q3: You have been approached by, Company Electronic Mfg Corp. an electronics manufacturer to provide them an increase of $7M to their working capital loan.
Q3: You have been approached by, Company Electronic Mfg Corp. an electronics manufacturer to provide them an increase of $7M to their working capital loan. (total loan = \$12M) You've been given the following ratios about their business. Debt/Equity =2, Debt/TNW = 9, Current Ratio: 1.0, Quick Ratio: 0.6, EBITDA/Interest Expense =3. Current Working Capital Loan =$5M Will you provide them the loan? Please explain the reasoning for your decision. (20 points)
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