What Is the Least Important Factor Determining Bankruptcy, According to the Altman

question 42

Multiple Choice

What is the least important factor determining bankruptcy, according to the Altman Z-score model?

• A)Working capital to assets ratio
• B)Retained earnings to assets ratio
• C)Earnings before interest and taxes to assets ratio
• D)Market value of equity to book value of long-term debt ratio
• E)Sales to assets ratio

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of income is taxed, showing the percentage of tax applied to your income for each tax bracket.

Total Tax

The comprehensive sum of all taxes a person or entity is liable to pay, including federal, state, local, and other forms of taxes.

Provincial Tax Brackets

The divisions at which tax rates change in a progressive tax system within specific provinces or territories.

Non-Eligible Dividends

Dividends that do not qualify for the dividend tax credit in certain jurisdictions, typically paid by companies that pay tax at a rate that is lower than the standard corporate tax rate.