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you are a loan officer for great plains bank of davenport david miller 535517

You are a loan officer for Great Plains Bank of Davenport. David Miller, president of D. Miller Corporation, has just left your office. He is interested in an 8-year loan to expand the company”s operations. The borrowed funds would be used to purchase new equipment. As evidence of the company”s debt-worthiness, Miller provided you with the following facts.

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2012

2011

Current ratio

3.1

2.1

Asset turnover ratio

2.8

2.2

Cash debt coverage ratio

.1

.2

Net income

Up 32%

Down 8%

Earnings per share

$3.30

$2.50

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