You have the following ratios for a firm you're analyzing: Working capital / total assets = 0.7 Retained earnings / total assets = 0.3 EBIT / total assets = 0.2 market value of equity / book value of LT debt = 1.3 sales / total assets = 0.4 Calculate the firm's Z-score. Enter

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 28MCQ
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You have the following ratios for a firm you're analyzing:

  • Working capital / total assets = 0.7
  • Retained earnings / total assets = 0.3
  • EBIT / total assets = 0.2
  • market value of equity / book value of LT debt = 1.3
  • sales / total assets = 0.4

Calculate the firm's Z-score. Enter 

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