2.

WK: working capital; RE: retained earnings; EBIT: operating income; MVE; market value of equity; TA: total assets.

Z-score=[1.2*WKTA]+[1.4*RETA]+[3.3*EBITTA]+[0.6*MVETL]+[0.99*SalesTA]

Consider the following financial statements of FCB company (albeit, truncated).

Current assets $21,398

Current Liabilities $ 10,924

Total assets $37,074

Total liabilities $ 16,209

Retained earnings $ 15,998

EBIT $2,888

Number of shares outstanding 1,600

Price per share $ ??

Sales $ 14,072

Required:

FCBs Z-score is 4.5. Find FCBs stock price per share. (6 marks)