Which of the Following Is True of Altman's Z-Score Boundaries

question 28

Multiple Choice

Which of the following is true of Altman's Z-Score Boundaries?

• A) If a publicly traded non-manufacturing firm has a Z-score of 1.81, it predicts bankruptcy.
• B) If a publicly traded manufacturing firm has a Z-score of 2.60, it indicates non-bankruptcy.
• C) If a publicly traded manufacturing firm has a Z-score of 1.42, the firm is in the zone of ignorance.
• D) The zone of ignorance for privately held manufacturing firms is 1.23 to 2.90.

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Definitions:

Solutions

Answers or methods for solving a problem or dealing with a difficult situation.

Hostile

Displaying or characterized by antagonism or opposition; often refers to takeovers in business where the acquiring company makes an offer directly to shareholders, bypassing the target company's management.

Biased

Showing an unfair or prejudiced view for or against someone or something, often ignoring reasonable judgment.

Rephrase

To change the wording of a statement while maintaining its original meaning.