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Use the following information to answer questions 9-10. Consider a firm with the following financial ratios: EBIT/total assets = 0.0683 Sales/total assets = 0.871 Market

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Use the following information to answer questions 9-10. Consider a firm with the following financial ratios: EBIT/total assets = 0.0683 Sales/total assets = 0.871 Market value of equity/total book debt = 0.712 Retained earnings/total assets = 0.473 Working capital/total assets = 0.067 9. Given the above information, what is the firm Z score? A. 2.266. B. 2.589. C. 3.115. D. 2.046. E. None of the above. 10. Given your answer in question 10, would you accept the client (extend credit) if the Z score cut off for a credit worthy business is 2.1? A. Accept since the calculated Z score is below 2.1. B. Accept since the calculated Z score is above 2.1. C. Reject since the calculated Z score is above 2.1. D. Reject since the calculated Z score is below 2.1. E. None of the above

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