Credit Analysis Report
You have been short listed by Bank of Abraham for an interview to work as a senior credit analyst in their head office in New York City. You are very excited at this opportunity not only because it offers you an opportunity to further utilize your skills in financial analysis but also because the bank is offering you very attractive fringe benefits including an all-expenses paid vacation to a destination of your choice once a year (you can also bring along a friend or family member).
Prior to the interview, the panel has asked you to produce a report, recommending whether to provide a loan to a Small-cap company of your choice listed on the New York Stock Exchange. The company is seeking a loan of 10% of its latest revenue figure to finance a new overseas venture. Refer to the last available 10-K for the latest revenue figure. You have also been provided a link to a website that provides a list of companies by Exchange Listing, Region and Market Cap. Choose NYSE, North America and Small Cap
(Links to an external site.)
Links to an external site.
. (The link is
http://www.nasdaq.com/screening/companies-by-industry.aspx?exchange=NYSE®ion=North+America&marketcap=Small-cap&country=United%20States&state=All%20states).
Knowing that you are registered in the Financial Statement Analysis Course, the panel has also reminded you to consult “Chapter 5: Risk Analysis” from Financial Reporting, Financial Statement Analysis and Valuation (Wahlen, Baginski, Bradshaw, 2017).
