Beaver, McNichols, and Rhie Have Developed the Following Model to Predict

question 37

Multiple Choice

Beaver, McNichols, and Rhie have developed the following model to predict the chance of failing during the next year relative to the chance of not failing for firms: log(relative chance of failure) = -6.445 - 1.192 ROA + 2.307 (liabilities/assets) - 0.346 (EBITDA/liabilities) , using

• A)multiple discriminant analyses.
• B)real options analysis.
• C)hazard analysis.
• D)None of the options are correct.