In the following table, eight years of data for Best Buy and Circuit City are presented. Evaluate
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In the following table, eight years of data for Best Buy and Circuit City are presented. Evaluate the performance of the two companies over time (see Appendix A in Chapter 1 for a structured approach). In addition, compute the z-score to determine the likelihood of bankruptcy. Comment on youranalysis.
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4,839.5877,370 7,668.000 8,62.000 10,294.000 11,864.000 13570.000 12,758.000 5,280,000 5,845.0006,607.000 7,334.000 8,234.000 1,821.928 2,521.000 2,70.000 3,422.000 4,449.000 5,257.000 6,26.000 4,524.000 4,854.000 4,933.000 Market Value of Equity 8,525.383 14,389.485 9,S59.552 17,287.506 17,737.035 26,127.578 22,840.84417,658.960 7,985.000 9,081000 7,342.000 2,714.698 3,780.00 ,798.000 4,501.000 4,959.000 ,056.000 6,0.000 6,769.000 1,766.984 2,258.000 2,046.000 2,607.000 2,85000 3,338.000 4,028.000 4,708.000 1,224.296 1,788.000 1,920.000 4,565.000 5,723.000 4,435.000 15,326.552 19,597.00 20,946.000 24,547.000 27,483.000 0,848.000 35,984.000 40,028.000 12,100,090 14,858.00 5,400.000 17,965.000 20,479.000 22,663.000 26,652.000 29,892.000 3,226.462 4,789.000 5,546.000 8,185.0009,282.000 10,SL.000 1,387.000 1,981.000 1,65000 1,762.000 2,025.000 2 3452.559 133.197 3799.117 3638.000 Stockholders' Equity Market Value of Equity 1801.554 1387.515 1199.411 9589.803 10015.946 9778.138 7117.460 7445.786 720.151 2648.186 2472.94 2570.2102457.987 0477.928 11597.686 12429.751748.691 2 0 0 2 9 Cash from Operations (CFO)
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Circuit City versus Best Buy The zscore is defined as Z 12 x 1 14 x 2 33 x 3 06 x 4 0999 x 5 Where x...View the full answer
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