BUSI 4465 Assignment 4


  1. What is Cineplex’s Altman Z-Score for 2013 and 2014?
  2. Assume you work for a commercial bank. Would you extend new credit to Cineplex? Why? Why not?
  3. As an investor, would you purchase any of Cineplex’s existing debt? Why or why not? Under what conditions would you be willing to purchase?
  4. Using the growth and discount rates (assume the cost of equity is the same as the discount rate) for 2013 given in Note 16 of Cineplex’s 2014 financial statements, what is the market’s assessment of Cineplex’s steady state return on equity at the end of 2014?