Use the Following Data: ROA = 10%; Total Liabilities =

question 48

Multiple Choice

Use the following data: ROA = 10%; Total liabilities = 90% of assets; EBITDA = 10% of liabilities. Calculate the relative chance of failure using the following model: Log (relative chance of failure) = -6.445 - 1.192 ROA + 2.307 (liabilities/assets) - 0.346(EBITDA/liabilities) .

• A)1.70 percent
• B)1.09 percent
• C)0.16 percent
• D)None of the options are correct.

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Definitions:

"Bad" Cholesterol

Low-density lipoprotein (LDL) cholesterol, often referred to as "bad" cholesterol, which can build up in arteries and increase the risk of heart disease.

Delirium Tremens

A severe form of alcohol withdrawal involving sudden and severe mental or nervous system changes, characterized by confusion, tremors, and hallucinations.

Alcohol Withdrawal

The symptoms and signs that occur after stopping or significantly reducing the intake of alcohol after prolonged periods of heavy drinking.

Convulsive Seizures

Seizures that involve violent muscle contractions and can be a symptom of epilepsy or other neurological conditions.