Compute the z-score of real and assess real bankruptcy

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Question - Consider the following financial statements of FCB company (albeit, truncated).

Current assets $21,398

Current Liabilities $ 10,924

Total assets $37,074

Total liabilities $ 16,209

Retained earnings $ 15,998

EBIT $2,888

Number of shares outstanding 1,286

Price per share $?

Sales $ 14,072

a. FCB's Z-score is 4.5 . Find FCB's stock price per share.

b. Another company, called REAL, a competitor of FCB, has the same variables and numerical values as that of FCB except for its stock price per share, which is $10 per share. Compute the Z-score of REAL and assess REAL's bankruptcy situation.

Reference no: EM133138343

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