Question
Which among the following is a numerical measurement
that is used to predict the chances of a business going bankrupt in the next two years.Solution
The Altman Z Score is used to predict the likelihood that a business will go bankrupt within the next two years. The formula is based on information found in the income statement and balance sheet of an organization. The Z score is based on the liquidity, profitability, solvency, sales activity, and leverage of the targeted business. Z Score is a useful metric for an outsider who has access to a company's financial statements. In its original form, the Z score formula is as follows: Z = 1.2A x 1.4B x 3.3C x 0.6D x 0.99E The letters in the formula designate the following measures: A = Working capital / Total assets [ Measures the relative amount of liquid assets] B = Retained earnings / Total assets [Determines cumulative profitability] C = Earnings before interest and taxes / Total assets [measures earnings away from the effects of taxes and leverage] D = Market value of equity / Book value of total liabilities [incorporates the effects of a decline in market value of a company's shares] E = Sales / Total assets [measures asset turnover]
I. 6y2 - 17y + 12 = 0
II. 15x2 - 38x + 24 = 0
Solve the quadratic equations and determine the relation between x and y:
Equation 1: 97x² - 436x + 339 = 0
Equation 2: 103y² - 460y + 357 = 0
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 32x + 252 = 0
Equation 2: y² - 30y + 221 = 0
Solve the given two equations and answer the two questions that follow as per the instructions given below.
I. (1/4) + 7.5p(-2) = 3.62...
I. 84x² - 167x - 55 = 0
II. 247y² + 210y + 27 = 0
I. 2x2 + 5x + 2 = 0
II. 4y2 = 1
I. x2 - 20x + 96 = 0
II. y2 - 23y + 22 = 0
If the roots of the quadratic equation 7y² + 5y + 9 = 0 are α and β, then find the value of [(1/α) + (1/β)].
- Find the value of p if the quadratic equation x² + px + 36 = 0 has real and equal roots.
I. x² + 3x – 154 = 0
II. y² + 5y – 126 = 0