Higher Z scores from a multiple discriminate analysis indicate a:
A)Higher risk of bankruptcy
B)Lower degree of creditworthiness
C)Lower amount of working capital
D)Higher degree of solvency

Question

Quizplus · Accepted Answer

Higher Z scores indicate a higher degree of solvency, which means the company is more capable of paying off its debts and has a lower risk of bankruptcy.

Higher Z Scores from a Multiple Discriminate Analysis Indicate A