1 value: 15.00 points Manufacturing, Inc., (FMM) has applied for a loan at True

Question

1 value: 15.00 points 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: $93,000 EBIT Net working capital Book value of equity 4,300 28,000 17,700 101,000 retained earnings The stock price of FMM is $30 per share and there are 5.900 shares outstanding. What is the Z-soore for this company? (Do not round intermedlate calculations and round your answer to 3 decimal places 9.9-32-161.) z. References eBook & Resources pimaaty 2 Inmermed

Explanation / Answer

Rounded off z-score = 3.93

Z-score= 1.2A + 1.4B + 3.3C + 0.6D + 1.0E Working capital 4300 Total assets 93000 A= Working capital /total assets= 0.046237 Retained earnings 17700 Total assets 93000 B= retained earnings/total assets= 0.190323 EBIT 7800 Total assets 93000 C= EBIT/Total assets= 0.083871 Market value of equity= 30*5900= 177000 Total liabilitie: Total assets 93000 Less: equity book value 28000 Less: retained earnings 17700 Total liabilitie 47300 D= market value of equity/ total liabilities= 3.742072 Sales 101000 Total assets 93000 E= sales/total assets= 1.086022

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.