30. We want to evaluate if we can invest in a firm A based on PD. The total assets are worth $8,000,000; working capital of $4,200,000. Their liabilities stand at $4,000,000; retained earnings amount to $800,000. EBIT come to $1,500,000. Sales total $8,500,000. Market value of equity is $6,000,000. 1) What is the Z-score ? (2 points) Answer: 2) If a recession happens, sales decreases 40% and WC. Increases 10%. What about Z-score? (2 points) Answer: I 3) Do you think this company is financially healthy? (1 points) Answer:

30. We want to evaluate if we can invest in a firm A based on PD. The total assets are worth $8,000,000; working capital of $4,200,000. Their liabilities stand at $4,000,000; retained earnings amount to $800,000. EBIT come to $1,500,000. Sales total $8,500,000. Market value of equity is $6,000,000. 1) What is the Z-score? ( 2 points) Answer: 2) If a recession happens, sales decreases 40% and WC. Increases 10%. What about Z-score? (2 points) Answer: 3) Do you think this company is financially healthy? (1 points)