A company has the following selected financial information: Stocks Outstanding 100 Current Assets $280 Total assets $1,200 EBIT $60 Sales $2,400 Stock Price $3 Total liabilities $240 Retain earnings $300 Current Liabilities $100 Altman's Z-score equation is Z = 1.2X1+1.4X2 +3.3X3+0.6X4+1X5. What is the Altman Z-Score? a. 6.4 O b. 5.4 OC. 3.4 O d. 4.8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company has the following selected financial
information:
Stocks Outstanding
Current Assets
100
$280
Total assets
$1,200
EBIT
$60
Sales
$2,400
Stock Price
$3
Total liabilities
$240
Retain earnings
$300
Current Liabilities
$100
Altman's Z-score equation is Z = 1.2X1+1.4X2
+3.3X3+0.6X4+1X5.
What is the Altman Z-Score?
a. 6.4
O b. 5.4
O c. 3.4
O d. 4.8
Transcribed Image Text:A company has the following selected financial information: Stocks Outstanding Current Assets 100 $280 Total assets $1,200 EBIT $60 Sales $2,400 Stock Price $3 Total liabilities $240 Retain earnings $300 Current Liabilities $100 Altman's Z-score equation is Z = 1.2X1+1.4X2 +3.3X3+0.6X4+1X5. What is the Altman Z-Score? a. 6.4 O b. 5.4 O c. 3.4 O d. 4.8
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