Case study questions:
1) Why did the share price drop significantly during 2005? What were the key issues driving this slump? What are the implications for the company’s position in the market? (Hint – also consider market, industry and strategy)   
2) Assess Evans & Tate’s financial performance in recent fiscal years. What is your evaluation of the company’s current financial conditions? (Hint – also consider relevant (not a full/comprehensive) financial analysis – e.g. some profitability, investment management, financial leverage ratios, plus a simple prediction of financial distress – e.g. – Altman Z Score)   
3) Discuss what has happened to Evans & Tate’s financial, strategic and industry performance since 2004. Use this context to explain elements of the Credit Analysis Process. What insights can be gained for risk averse investors?  
4) If you were Mr Franklin Tate in late 2004, what would you do? (Hint – think of managerial/strategic responses – i.e. – develop a professional opinion as to what you would do)   
5) What is your assessment of Evans & Tate’s future? What actions should you take? (Hint – also consider forecasting, not a full forecast, but elements from forecasting, e.g. what do you think about future sales growth?)  
6) Comprehensively apply and explain the Altman Z Score model to Evans and Tate in 2005. Critique each element of the model including the assumptions that are used. How confident are you in recommending an action based on this analysis? Further research may be necessary.
7) What are the critical performance dimensions for wine industry company that should be considered in credit analysis? What ratios would you suggest looking at for each of these dimensions? Discuss this question by comparing and contrasting Evans and Tate to another wine industry competitor.

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