Solved

Consider the Following Data of a Prospective Borrower What Is This Company's Z-Score ?
A)2

Question 22

Multiple Choice

Consider the following data of a prospective borrower.  Current assets $120000 Current liabilities $60000 Total assets $500000 Market value of equity $50000 Book value of equity $60000 Retained earnings $12000 Interest expense $20000 Profit before tax $200000 Sales revenue $1000000\begin{array} { | l | r | } \hline \text { Current assets } & \$ 120000 \\\hline \text { Current liabilities } & \$ 60000 \\\hline \text { Total assets } & \$ 500000 \\\hline \text { Market value of equity } & \$ 50000 \\\hline \text { Book value of equity } & \$ 60000 \\\hline \text { Retained earnings } & \$ 12000 \\\hline \text { Interest expense } & \$ 20000 \\\hline \text { Profit before tax } & \$ 200000 \\\hline \text { Sales revenue } & \$ 1000000 \\\hline\end{array} What is this company's Z-score ?


A) 2.70
B) 2.80
C) 2.90
D) 3.00

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents