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Question 2 Not yet answered Marked out of 25.00 Using the discriminant analysis techniques to predict the bankruptcy, answer the following credit worthiness questions
Question 2 Not yet answered Marked out of 25.00 Using the discriminant analysis techniques to predict the bankruptcy, answer the following credit worthiness questions regarding Honda and Toyota. The informations for both corporations are shown as follows. Honda (in million) Toyota (in million) PFlag question Current assets 7,877 9,726 Total assets 13,535 13,670 Current liabilities 7,519 6,778 Shareholders' equity 4,694 5,622 Book value of shareholder's equity 8,788 9,835 Net Revenue 6,168 6,888 Retained earnings 1,364 839 1,731 3,194 0.20 0.40 Earnings before interest and taxes Market price per share a. Calculate the market value for both corporations b. What is the book value of debt for Honda and Toyota? c. Compute the Z-score for both corporations. d. Explain why Honda have different Z-score from Toyota e. Which corporation has the high possibility of going bankrupt? Explain. AA B E
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