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You have been approached by, Company Electronic Mfg Corp. anelectronics manufacturer to provide them an increase of $7M totheir working capital loan. (total loan =

You have been approached by, Company Electronic Mfg Corp. anelectronics manufacturer to provide them an increase of $7M totheir working capital loan. (total loan = $12M) You’ve been giventhe following ratios about their business. Debt/Equity = 2,Debt/TNW = 9, Current Ratio: 1.0, Quick Ratio: 0.6, EBITDA/InterestExpense = 3. Current Working Capital Loan = $5M Will you providethem the loan? Please explain the reasoning for yourdecision.

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