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 1,286

Price per share $ ??

Sales $ 14,072

a.

20 marks

FCBs Z-score is 4.0 . Find FCBs stock price per share.

b.

30 marks

Another company, called REAL, a competitor of FCB, has the same variables and numerical values as that of FCB except for its stock price per share, which is $28 per share. Compute the Z-score of REAL and assess REALs bankruptcy situation.