Which One of the Following Financial Ratios Is Not Used

question 21

Multiple Choice

Which one of the following financial ratios is not used to develop Altman's Z score from multiple discriminant analysis?

• A) Market value of equity/Total book debt
• B) EBIT/Total assets
• C) Interest expense/Total assets
• D)Working capital/Total assets

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Definitions:

Mixed Numbers

Numbers consisting of an integer and a fraction.

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest possible values.

Mixed Numbers

Quantities that combine a whole number with a fraction less than one.

Lowest Terms

The simplest form of a fraction, with both the numerator and denominator reduced to their smallest possible numbers.