5) ABC Inc., has applied for a loan at True Credit Bank. Jon Fulkerson, the credit anal bank, has gathered the following information from the company's financial statements Total Assets $90,000, EBIT $7,000, NWC $3,000, BV of Equity $30,000, Accumulated Retained Earmings $15,000, Sales $95,000. There are 6,000 shares outstanding and the price share is $30. What is the value of the Z-Score? A. 3.39 B. 3.31 C. 3.45 D. 3.25 E. 3.49 6) Your firm is considering leasing a new robotic milling control system. The lease lasts for 5 years The lease calls for 6 payments of $300,000 per year with the first payment occurring at lease inception. The system would cost $1,050,000 to buy and would be straight-line depreciated to a zero salvage value. The actual salvage value is zero. The firm can borrow at 8%, and the corporate tax rate is 349%. What is the after-tax cash flow in years I through 5? A. S-126,600 B. S-198,000 C. $-269,400 D. $-287,250 E. None of the above 7) In problem 6, what is the NPV of the lease? A. S-111,690 B. $-295,040 C. $-305,388 D. S-309,690 E. None of the above The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant, then: A. the capital gains yield will decrease B. the capital gains yield will increase. C. the dividend yield will increase. D. the dividend yield will also remain constant. E. neither the capital gains yield nor the dividend yield will change. 8)