Use Altman's discriminant function (the Z-Score model) to determine whether to grant credit to Nova Enviro Inc., where: Assets Balance Sheet (in thousands S) Cash Accounts receivable Plant and equipment 800 Land 200 1,500 Total assets 150 350 Sales Cost of goods sold Depreciation Interest expense Taxes Net income Liabilities Income Statement (in thousands S) 1,750 1,025 128 122 245 230 Notes payable Debt (long term) Contributed capital Retained earnings 70 830 200 400 1,500 Notes: Nova Enviro pays 50% dividends. Equity is currently selling at 180% of its book value. a) What is the market value of equity? b) Calculate Nova Enviro's Z score. Should their loan application be approved? 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 (i.e. risk-free rate) is 2.5%.