Fair-to-Midland Manufacturing, Inc., (FMM) has applied for a loan at True Credit Bank. Jon Fulkerson, the credit
Question:
Fair-to-Midland Manufacturing, Inc., (FMM) has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements:
Total assets ....................................$75,000
EBIT ..................................................... 6,900
Net working capital ........................... 3,400
Book value of equity ........................19,000
Accumulated retained earnings .....16,800
Sales ..................................................92,000
The stock price of FMM is $21 per share and there are 5,000 shares outstanding. What is the Z-score for this company?
Step by Step Answer:
Since we are given shares outstanding and a share price the company must be publicly t...View the full answer
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
