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Does anyone know whether the below will be given in exam?
Z = 0.012X1 + 0.014X2 + 0.33X3 + 0.006X4 + X5
Where:
X1 = working capital/total assets
X2 = retained earnings/total assets
X3 = profit before interest and tax/total assets
X4 = market value of equity/book value of debt
X5 = sales/total assetsThank you!
Yes, the Z score has always been given in the exam. Don’t have to memorize it.
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