Solution-Bankruptcy as the assets turnover variable

Bankruptcy as the assets turnover variable

Reference no: EM131340949

Altman's bankruptcy prediction model places a coefficient of 3.3 on the earnings before interest and taxes divided by total assets variable but a coefficient of only 1.0 on the sales to total assets variable. Does this mean that earning variable is 3.3 times as important in predicting bankruptcy as the assets turnover variable? Explain

Reference no: EM131340949

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Bankruptcy as the assets turnover variable : Does this mean that earning variable is 3.3 times as important in predicting bankruptcy as the assets turnover variable? Explain

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Bankruptcy as the assets turnover variable

Reference no: EM131340949

Reference no: EM131340949

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