The folowing is ABC Inc.'s balance sheet (in thousands): market valua of equity is equal to its bock value, and the company pary no dividende. a. Calculate the discriminant function mosel of Almais Z score for ABC, Inc. If ABC has a so percent dividend payout rato and the market yatue of equily is aqual io its pook value. (25 marks) Recal the following: EBIT = Revenues - Cout of 9oods sold - Deprociation Taxes = (EBIT - interestyTax rase) Net income = EBIT - Interest - Taues Retaned eamings = Nat income(1 - Dividend payout rasio) Net working captal = Curfert assets - Curent liabitios Current assets w Cash + Accounts recaiviblo + Inventories Current asbities = Accounts payable - Accrials + Notes payable b. Should you aporove ABC inc:s application to your hank for $500,000 for a capita expansion loan? (to marks) c. If ABC's saies were $450,000, taves were $16.000, and the market vatue of equiy foll to one-quarter of tas book value (assume cost of goods sold and interest are unch anged). how would that change ABC's income statement? With the new data, does your credit deckion change?, (25 manks) d. What afe sorte of the shortcomings of ising a discriminant function model to evaluate credt risk) (10 marks)