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The following data are presented for Rocket Company $100,000 300,000 Working capital Total assets Retained earnings Earnings before interest and taxes Market value of equity

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The following data are presented for Rocket Company $100,000 300,000 Working capital Total assets Retained earnings Earnings before interest and taxes Market value of equity Book value of total debt Sales 140,000 60,000 200,000 220,000 600,000 Z Score Formula: Z-,012X, *.014X, *.033X, *.006X, *.010X, Required: a. Compute the Z score for Rocket Company b. Considering the Altman model, comment on the likelihood that this firm will experience financial failure. Paragraph B /

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