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:

Developmental Psychologist

A psychologist who specializes in understanding the changes that people undergo throughout their lifespan, including physical, cognitive, social, intellectual, perceptual, personality, and emotional growth.

Behaviour

The actions or reactions of an organism, often in relation to its environment, which can be observed and measured.

Life Span

The maximum duration of life, or the length of time an individual or entity exists from birth to death.

Specialization

A process or strategy of focusing on a narrow area of knowledge or skill, often to achieve higher levels of expertise in that area.