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Beaver, McNichols, and Rhie have developed the following model to predict the chance offailing during the next year relative to the chance of not failing

Beaver, McNichols, and Rhie have developed the following model to predict the chance offailing during the next year relative to the chance of not failing for firms: log(relative chanceof failure)=-6.445-1.192 ROA +2.307(liabilities/assets)-0.346(EBITDA/liabilities), usingA) multiple discriminant analyses.B) real options analysis.C) hazard analysis.D) None of the options are correct.

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