Consider the Following Data of a Prospective Borrower What Is This Company's Z-Score (Round to Two Decimals)?
A)3

question 64

Multiple Choice

Consider the following data of a prospective borrower. $$\begin{array} { | l | r | } \hline \text { Working capital } & \$ 50000 \\\hline \text { Total assets } & \$ 500000 \\\hline \text { Market value of equity } & \$ 40000 \\\hline \text { Book value of long-term debt } & \$ 360000 \\\hline \text { Retained earnings } & \$ 15000 \\\hline \text { EBIT } & \$ 250000 \\\hline \text { Sales revenue } & \$ 1000000 \\\hline\end{array}$$ What is this company's Z-score (round to two decimals) ?

• A)3.78
• B)3.88
• C)3.98
• D)4.08