WK: working capital; RE: retained earnings; EBIT: operating income; MVE; market value of equity; TA: total assets.

Consider the following financial statements of FCB company (albeit, truncated).

Current assets $21,398

Current Liabilities $ 10,924

Total assets $37,074

Total liabilities $ 16,209

Retained earnings $ 15,998

EBIT $2,888

Number of shares outstanding 1,600

Price per share $ ??

Sales $ 14,072

Required:

FCBs Z-score is 4.0 . Find FCBs stock price per share. (7 marks)

WK RE EBIT Z-score =[1.2* MVE ]+[1.4* ]+[3.3* -]+[0.6* TA TA TA TL $]+[0.99 * Sales -] TA