Question 25 (15 marks) You are a Credit Officer at Capital Two Bank Lad and Zebron Ltd has applied for a loan of $1,500,000. Miss Lee, your trainee Credit Analyst has assessed the application and has partially computed the Altman Z-score for the last three years and has presented you with the following 2018 Z-Score = X1+x2+x3+X5 -2.4426 2017 Z-Score = X1X2+X3+X5 -1.8596 2016 Z-Score - XI+X2+X3+X5 -1.3218 She has also presented you with the following additional data on Zebron Ltd 31/12/2018 31/12/2017 31/12/2016 5,000 5,000 5,000 Total Liabilities 3384 3192 4152 Shareholders' equity: Common stock (S0.1 par value) - Authorized 4,000,000 shares - Issued and outstanding, 3,500,000 shares 350 350 350 Paid-in capital in excess of par 2,415 2,415 2,415 Retained eamings 1.222 241 180 Total Shareholders' equity 3987 3006 2945 Market price for each share of Zebron's common stock was as follows: January 3, 2018 - $1.25, December 31, 2018 - $1.14 January 3, 2017-$1.10; December 31, 2017 - $0.86 January 3, 2016- $0.40: December 31, 2016 - $0.55 a) Complete the computation of the score for each of the three years. (6 Marks) b) Comment on the individual Z score for each year as it relates to a lending decision for Zebron Lid (6 marks) c) Use Altman Z-Score for all three years to decide whether or not you would approve Zebron's Joan application 3 marks)