Paul Martin Walker, the credit analyst at the Washington Mutual bank received a credit application from Seether, LLC, a private company. An abbreviated portion of the financial information provided by the company is shown below:
|
Total assets EBIT Net working capital Book value of equity Accumulated retained earnings Sales Total liabilities |
$63,000 $7,900 $4,200 $18,000 $16,000 $92,000 $57,000 |
What is the Z-score for this company?
Select one:
A. 3.519
B. there is not enough information to calculate Seether’s Z-score
C. 2.851
Z-score is given by:
Z-score = 6.56*Net working capital/total assets + 3.26*Accumulated retained earnings/total assets + 1.05*EBIT/total assets + 6.72*Book value of equity/total liabilities
= (6.56*4,200/63,000) + (3.26*16,000/63,000) + (1.05*7,900/63,000) + (6.72*18,000/57,000) = 3.519 (Option A)
Paul Martin Walker, the credit analyst at the Washington Mutual bank received a credit application from...
Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit application from Seether, LLC, a private company. An abbreviated portion of the financial information provided by the company is shown below: Total assets $72,000 EBIT 8,800 Net working capital 5,100 Book value of equity 27,000 Accumulated retained earnings 16,900 Total liabilities 66,000 What is the Z-score for this company? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit application from Seether, LLC, a private company. An abbreviated portion of the financial information provided by the company is shown below: Total assets $65,000 EBIT 8,100 Net working capital 4,400 Book value of equity 20,000 Accumulated retained earnings 16,200 Total liabilities 59,000 What is the Z-score for this company? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements: Total assets $89,000 EBIT 7,600 Net working capital 4,100 Book value of equity 26,000 Accumulated retained earnings 17,500 Sales 99,000 The stock price of FMM is $28 per share and there are 5,700 shares outstanding. What is the Z-score for this company?
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements: Total assets $103,000 EBIT 8,300 Net working capital 4,800 Book value of equity 33,000 Accumulated retained earnings 18,200 Sales 106,000 The stock price of FMM is $35 per share and there are 6,400 shares outstanding. What is the Z-score for this company? (Do not round intermediate calculations...