Bavarian Sausages has a working capital/total assets ratio of 0.1,a retained earnings/total assets ratio of 0.2,an earnings before interest and taxes/total assets ratio of 0.14,a market value of equity/book value of equity ratio of 0.2,and a sales/total assets ratio of 0.35.What is the company's Z score?

Question

Quizplus · Accepted Answer

1.2(.1)+1.4(.2)+3.3(.14)+0.6(.2)+.35 = 1.33

Bavarian Sausages Has a Working Capital/total Assets Ratio of 0