Question
The following are financial ratios for Merrimack company: i. EBIT/Total Assets = 0.0523 ii. Sales/Total Assets = 2.854 iii. Working Capital/Total Assets = 0.315 iv.
The following are financial ratios for Merrimack company: i. EBIT/Total Assets = 0.0523 ii. Sales/Total Assets = 2.854 iii. Working Capital/Total Assets = 0.315 iv. Market Value of Equity/Book Value of Liabilities = 1.315 v. Retained Earnings/Total Assets = 0.387 What is the Altmans Z-score of the company? What does it indicate?
a. 6.270; default unlikely
b. 4.707; default highly likely
c. 6.270; default highly likely
d. 4.707; default unlikely
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Quantitative Financial Analytics The Path To Investment Profits
Authors: Edward E Williams, John A Dobelman
1st Edition
9813224258, 978-9813224254
