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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

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 )
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 shareholders equity 8,788 9,835
Net Revenue 6,168 6,888
Retained earnings 1,364 839
Earnings before interest and taxes 1,731 3,194
Market price per share 0.20 0.40

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.

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