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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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