14-39. Compute and Interpret Z-score CANADIAN TIRE CORPORATION LIMITED (CTC-A.TO) Refer to the financial statements for Can

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14-39. Compute and Interpret Z-score CANADIAN TIRE CORPORATION LIMITED

(CTC-A.TO)

Refer to the financial statements for Can adian Tire in I4-38. Use the fo llowing information to answer the requirements.

Required 2018 2017 Shares outstanding. . . . . . . . . . . . . . . . . . 59,478,460 63,066,561 Stock price per share. . . . . . . . . . . . . . . . $C142.74 $C163.90

a. Compute and compare the Altman Z-scores/or both years. What explains the year-over-year change?

b. Is the company more likely to go bankrupt given the Z-score in 2018 compared to 2017? Explain.

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