1. How many firms have an Altmans Z-score less than 1.8 and fall in the Distress Zone?

multiple choice 1

• 300

• 27

• 305

• 310

2. How many firms have an Altmans Z-score greater than or equal to 1.8, but less than 3.0 and fall in the Gray Zone?

multiple choice 2

• 523

• 516

• 510

• 530

3. Based on the Altman Zs formula, the ________ each of the five factors (or financial ratios), the _______ the chance of going bankrupt.

multiple choice 3

• lower; lower

• higher; higher

• higher; lower

4. With recent financial pressure from large retailers like Walmart and Amazon, would you predict retail firms to be more or less likely to go bankrupt?

multiple choice 4

• Less likely to go bankrupt

• More likely to go bankrupt

5. How many companies/years (observations) are considered in this dataset?

multiple choice 5

• 2,332

• 2,329

• 2,331

• 2,330