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      Question

      Which financial ratios are used in the Altman Z-score

      for bankruptcy prediction?
      A Profitability only Correct Answer Incorrect Answer
      B Liquidity only Correct Answer Incorrect Answer
      C Solvency and Activity Correct Answer Incorrect Answer
      D Multiple ratios from profitability, liquidity, solvency Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The Z-score combines various ratios: working capital, retained earnings, EBIT, market value equity, total assets, and sales.

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