Question 3 (7 + 3 = 10 marks) a. XY Corporation has an outstanding $11 million loan with FIN441 bank for the current year. As required in the loan agreement XY Corporation reports the following financial data s to FIN441 bank each month- Financial Dimensions One Two Three Four Current Month Month Months Months Month Ago Ago Ago Ago $ 33 $ 57 $ 51 $ 44 $ 43 $ 298 $ 295 $ 294$ 291 $ 288 Cash account (millions of dollars) Projected sales (millions of dollars) Retum on Sales (ROS - operating profitet sales) Capital structure (debt to total oquity ratio) $ 6.60 $6.50 $ 6.40 $ 625 $ 6.50 32.8% 33.9% 34.6% 31.9% 35.7% Current ratio 1.23 1.35 1.39 1.25 $ 15 $ 14 S 13 S 11$ 13 Ramnings before interest and taxes (IBIT; in millions of dollars) Return on assets (ROA - income total asset) Total revenue (millions of dollars) 3329 3.25% 2.98% 3.13% $ 290 $ 289 $ 290 $ 289 3.11% $ 287 XY corporation took the loan for a real estate development project and until now they have been able to meet each of their deadline regarding installment payment. Furthermore they have an excellent credit rating. The loan officer of FIN441 Bank reviewed the insurance coverage of XY corporation, and found it to be adequate for the loan. FIN441 bank is a reputable bank in the financial market of Bangladesh. They are currently in a position to give loans tn corporations. The financial market of Bangladesh is booming and rumar in the market is that interest rate might rise. In the market they are known for not taking unnecessary risks and public confidence in the bank is high. Operating with a positive interest sensitive gap and cumulative gap, the management of the bank believes in not applying aggressive strategies when market is in turmoi. Based on the follow ng information is there ary indication for this loan to turn into non-performing loan for FIN441 hank? lustify your answer. About what dimensions of the company's financial performance shoud FIN441 Rank be concerned about and why? (2 + 2 = 4 marks) If XY corporation applies for more loan should FIN441 Bank approve further loan request? Justify your answer with proper reasoning using the financial dimensions given a ove for the company and the C's of creditworthiness checking. Be specific and to the point. (3 marks) Question 3 (7 + 3 = 10 marks) a. XY Corporation has an outstanding $11 million loan with FIN441 bank for the current year. As required in the loan agreement XY Corporation reports the following financial data s to FIN441 bank each month- Financial Dimensions One Two Three Four Current Month Month Months Months Month Ago Ago Ago Ago $ 33 $ 57 $ 51 $ 44 $ 43 $ 298 $ 295 $ 294$ 291 $ 288 Cash account (millions of dollars) Projected sales (millions of dollars) Retum on Sales (ROS - operating profitet sales) Capital structure (debt to total oquity ratio) $ 6.60 $6.50 $ 6.40 $ 625 $ 6.50 32.8% 33.9% 34.6% 31.9% 35.7% Current ratio 1.23 1.35 1.39 1.25 $ 15 $ 14 S 13 S 11$ 13 Ramnings before interest and taxes (IBIT; in millions of dollars) Return on assets (ROA - income total asset) Total revenue (millions of dollars) 3329 3.25% 2.98% 3.13% $ 290 $ 289 $ 290 $ 289 3.11% $ 287 XY corporation took the loan for a real estate development project and until now they have been able to meet each of their deadline regarding installment payment. Furthermore they have an excellent credit rating. The loan officer of FIN441 Bank reviewed the insurance coverage of XY corporation, and found it to be adequate for the loan. FIN441 bank is a reputable bank in the financial market of Bangladesh. They are currently in a position to give loans tn corporations. The financial market of Bangladesh is booming and rumar in the market is that interest rate might rise. In the market they are known for not taking unnecessary risks and public confidence in the bank is high. Operating with a positive interest sensitive gap and cumulative gap, the management of the bank believes in not applying aggressive strategies when market is in turmoi. Based on the follow ng information is there ary indication for this loan to turn into non-performing loan for FIN441 hank? lustify your answer. About what dimensions of the company's financial performance shoud FIN441 Rank be concerned about and why? (2 + 2 = 4 marks) If XY corporation applies for more loan should FIN441 Bank approve further loan request? Justify your answer with proper reasoning using the financial dimensions given a ove for the company and the C's of creditworthiness checking. Be specific and to the point