With the Altman Model,the Higher the Z Score,the More Likely

question 21

True/False

With the Altman model,the higher the Z score,the more likely the firm will go bankrupt.

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Definitions:

Treasury Stock

Shares that were once in circulation but have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Shares

Equity securities that represent ownership in a company; holders may vote on corporate matters and receive dividends.

Stock Dividend

A dividend payment made in shares of stock rather than cash, allowing shareholders to increase their shareholding without directly purchasing additional shares.

Treasury Stock

These are shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.