QUESTION 24

1. The following are financial ratios for Merrimack company:
2. i. EBIT/Total Assets = 0.0523
3. ii. Sales/Total Assets = 2.854
4. iii. Working Capital/Total Assets = 0.315
5. iv. Market Value of Equity/Book Value of Liabilities = 1.315
6. v. Retained Earnings/Total Assets = 0.387
8. What is the Altman's Z-score of the company? What does it indicate?
9. 6.270; default unlikely
10. 4.707; default highly likely
11. 6.270; default highly likely
12. 4.707; default unlikely