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

question 22

Multiple Choice

Given the following data: ROA = 10%; total liabilities = 90% of the 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) 1.7%
• B) 1.09%
• C) 0.16%
• D) none of the above

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Definitions:

Schaie's View

Schaie's View pertains to a theory of cognitive development that proposes that adults go through stages of cognitive maturation involving acquisition, achieving, responsible, executive, and reintegrative stages.

Cognitive Development

The process of growth and change in intellectual capabilities such as thinking, reasoning, and problem-solving, throughout the life span.

Acquisition Stage

A phase in learning or development where new information or skills are obtained.

Executive Stage

In Schaie’s theory, a stage that some middle adults experience who take on executive functions at work and in the community that extends beyond the responsible stage. This stage requires one to focus heavily on learning about complex relationships, multiple perspectives, commitment, and conflict resolution.