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One can definitely assess the credit quality of an issuer by using the Z-score alone. True or False? A. False, because Z-score ignores other soft

One can definitely assess the credit quality of an issuer by using the Z-score alone. True or False?

A. False, because Z-score ignores other soft information about the firm.

B. True, because Z-score usually has a correct prediction of over 85%.

C. False, because Z-score already incorporates future information (i.e., management outlook report) into its estimation.

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