Question
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the companys financial statements:
| Total assets | $105,000 |
| EBIT | 8,400 |
| Net working capital | 4,900 |
| Book value of equity | 34,000 |
| Accumulated retained earnings | 18,300 |
| Sales | 107,000 |
| The stock price of FMM is $36 per share and there are 6,500 shares outstanding. What is the Z-score for this company? *answer is NOT 1.04 or 1.0127. Thanks!! |
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
