The following is ABC Inc.'s balance sheet (in thousands) Also assume that sales equal $500, cost of goods sold equals $360, interest payments equal $62, taxes equal $56, and net income equals $22. Assume the beginning retained earnings is $0, the market value of equity is equal to its book value, and the company pays no dividends. a. Calculate Altman's Z-score for ABC Inc. if ABC has a 50 percent dividend payout ratio and the market value of equity is equal to its book value. b. Should you approve ABC Inc.'s application to your bank for $500,000 for a capital expansion loan? hide