Cash Use Altman's discriminant function (the Z-Score model) to determine whether to grant credit to Nova Enviro Inc., where Balance Sheet (in thousands $) Assets Liabilities 150 Notes payable 70 Accounts receivable 350 Debt (long term) 830 Plant and equipment 800 Contributed capital 200 Land 200 Retained earnings 400 Total assets 1,500 1,500 Income Statement (in thousands $) Sales 1,750 Cost of goods sold 1,025 Depreciation 128 Interest expense 122 Taxes 245 Net income 230 Notes: Nova Enviro pays 50% dividends. Equity is currently selling at 180% of its book value. 2 a) What is the market value of equity? b) Calculate Nova Enviro's Z score. Should their loan application be approved? (Note: Keep 3 decimals for your results of Xs: 2 decimals for 2) c) If you ever decide to grant the loan, what interest rate would you charge on the loan? Assume: The collateral (C) is 55% of the repayment obligation, and time value of money (ie, risk-free rate) is 2.5% (Note: Keep 4 decimals for probability and interest rate)