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 from a multiple discriminate analysis indicate a higher degree of solvency, which means the company has a lower risk of bankruptcy and a higher degree of creditworthiness. It also implies that the company has a higher amount of working capital to sustain its operations.

Higher Z Scores from a Multiple Discriminate Analysis Indicate A