Two points relating to pensions should be: oxamined when the firm has a defined benefit plan. One is the assumed discount rate used to compute the actuarial present value of the accumatsted beretit obligationt and the profected benefit obligation. The higher the interest rate used, the lower the present value of the lability and the fower the immediate pension cost. The other ltem 15 the rate of compensation increase used in computing the projected bencht obipations. According to Beaver's Univariate Model the following ratios were the best for forecasting financial fallure (in the order of their preoictive power: Cash flow/total debt, Net incocre/ total assets (return of assets) and According to the Beaver study, particular attertion should be puid to throe current assets when forecasting firancial fallitre cash accourits recolvable, and inventory. The arabst should be alert for Edward L. Altrian and Thomas P. MoGouch developed a multivartate model to predict barikruptey, Ha model ines free finlancial fatics weighted in order to maximise the predictive power at the madel. The model produces an overall discriminant score, called a 2 score. The Altrian moded is as follow: Z 0121+0142+0133+0064+ Q10 XS where X1 - Woricing Capital/Total Assets. Tins last carmpitation is Eavearil 1 Niman and 7 ivomas R. AcCough dervelooed a thulwivartate model to maidet barknaptey. Jus model usen free finarcial pation whichted in order to msaliwal the bredictive power of the model. The morlet a 7 score. The Auman mootei h as follows. Z 0121+0142+0923+0264+ b10 5 where 2 \& Metained farningt Two points relating to pensions should be: oxamined when the firm has a defined benefit plan. One is the assumed discount rate used to compute the actuarial present value of the accumatsted beretit obligationt and the profected benefit obligation. The higher the interest rate used, the lower the present value of the lability and the fower the immediate pension cost. The other ltem 15 the rate of compensation increase used in computing the projected bencht obipations. According to Beaver's Univariate Model the following ratios were the best for forecasting financial fallure (in the order of their preoictive power: Cash flow/total debt, Net incocre/ total assets (return of assets) and According to the Beaver study, particular attertion should be puid to throe current assets when forecasting firancial fallitre cash accourits recolvable, and inventory. The arabst should be alert for Edward L. Altrian and Thomas P. MoGouch developed a multivartate model to predict barikruptey, Ha model ines free finlancial fatics weighted in order to maximise the predictive power at the madel. The model produces an overall discriminant score, called a 2 score. The Altrian moded is as follow: Z 0121+0142+0133+0064+ Q10 XS where X1 - Woricing Capital/Total Assets. Tins last carmpitation is Eavearil 1 Niman and 7 ivomas R. AcCough dervelooed a thulwivartate model to maidet barknaptey. Jus model usen free finarcial pation whichted in order to msaliwal the bredictive power of the model. The morlet a 7 score. The Auman mootei h as follows. Z 0121+0142+0923+0264+ b10 5 where 2 \& Metained farningt
