Question
How many co-efficients are there in the Altman Z Score
Model?Solution
The Z-score formula for predicting bankruptcy was published in 1968 by Edward I Altman  The original Z-score formula was as follows: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5. X1 = working capital / total assets. Measures liquid assets in relation to the size of the company. X2 = retained earnings / total assets. Measures profitability that reflects the company's age and earning power. X3 = earnings before interest and taxes / total assets. Measures operating efficiency apart from tax and leveraging factors. It recognizes operating earnings as being important to long-term viability. X4 = market value of equity/book value of total liabilities. Adds market dimension that can show up security price fluctuation as a possible red flag. X5 =  sales / total assets. The standard measure for total asset turnover (varies greatly from industry to industry).
Suppose the money supply in Mexico grows more quickly than the money supply in the USA. We would expect that
An economist calculated the cross-price elasticity of demand for nicknacks and gizmos and got -0.5. What can she conclude about the relationsh...
Find the value of Lerner index if P=10 and MR= 5
A card is drawn randomly from a deck of ordinary playing cards. You win Rs.900 if the card is a spade or a king. What is the probability that you will w...
Knife-edge equilibrium means:
In classical linear regression model if we add in 90 in X and Y observation and re-estimate the regression model then slope coefficient
Demand and supply equations were given as Qd = 300 - P, Qs = P/2 and govt imposes specific tax you had to find quantity at which tax revenue is maximized?
Consider the matching-pennies game:
Let p= probab...
From an economic efficiency perspective, what is the socially optimal level of pollution? State the fundamental condition (in terms of marginal cost and...
During which plan, there was focus on indigenous growth?
Relevant for Exams:
