Discussion:
Q: Given the following numbers:
Working capital $ 90,000
Total assets 620,000
Retained earning 30,000
Earnings before interest and taxes 55.000
Market value of equity 100,000
Book value of total debt 280,000
Sales 440,000
a) Compute the z score for the data company.
b) Considering the Altman model, comment on the likelihood that this firm will experience financial failures.