Edward I.Altman developed a multivariate model to predict bankruptcy.The model produces an overall discriminant score called a Z value.Which of the following statements is probably an unreasonable statement relating to the Z value?
A) The sales generating ability of the firm's assets is one of the important considerations in the Z value.
B) The lack of a market value for a company's stock will reduce the significance of the Z value approach.
C) Total assets is an important consideration in the Z value computation.
D) Cumulative profitability over time is considered in the Z value computation.
E) A Z score of 2.00 or below indicates a very healthy company.
Correct Answer:
Verified
Q1: Which of the following ratios is rated
Q2: Which of the following depreciation methods is
Q3: Which of the following is not a
Q5: Which of the following statements is not
Q6: Which of the following ratios is a
Q7: Which of the following variables indicates a
Q8: Which of the following is not
Q9: Tom Copeland,Tim Keller,and Jack Morrin,on their book
Q10: Most of the ratios given a high
Q11: Which of the following statements is not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents