What is the Altman discriminant function value for MNO Inc.? Recall that:

Net working capital = current assets minus current liabilities Current assets = cash + accounts receivable + inventories Current liabilities = accounts payable + accruals + notes payable EBIT = revenues - cost of goods sold - depreciation

Taxes = (EBIT - interest)(tax rate)
Net income = EBIT - interest - taxes
Retained earnings = net income (1 - dividend payout ratio)

(b)  Should you approve MNO Inc.'s application to your bank for a $500 capital expansion loan?

(c)  Would the discriminant function change for firms in different industries? What are the implications for the use of these types of models by FIs?