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.). (The link is
http://www.nasdaq.com/screening/companies-by-industry.aspx?exchange=NYSE®ion=North+America&marketcap=Smallcap&country=United%20States&state=All%20states)
Knowing that you are registered in the Financial Statement Analysis Course at Excelsior College, the panel has also reminded you to consult “Chapter 5: Risk
Analysis” from your main text book reading.
Task
Your task is to produce a Credit Analysis Report (with a maximum word count of 2,000 words- tables/graphs not including) recommending whether to
provide the loan. You have been reminded that, the panelists are all busy professionals and are not interested in seeing a very long report; therefore you will
need to keep to the word limit.
Sample Solution
