GM Financial Information (year-end 2004) Current assets $ 55,515,000 Current lia
ID: 2732419 • Letter: G
Question
GM Financial Information (year-end 2004) Current assets $ 55,515,000 Current liabilities $ 74,894,000 Retained earnings $ 14,425,000 Total assets $ 482,027,000 Total liabilities $ 451,883,000 Shares outstanding 565,100,300 Share price $ 29.31 Sales $ 193,516,000 EBIT $ 1,195,000 All values in thousands except share price and shares outstanding.
1.Compute the Z score for General Motors Corporation given the information above for year-end 2004. Round your answer to four decimal places.
2. At what share price would GM have a Z score equal to 3.00? Round your answer to the nearest cent.
3. Based on its Z score, is GM likely to go bankrupt in the near future?
Explanation / Answer
Working:
Z Score = 1.2A+1.4B+3.3C+0.6D+1.0E = 1.2*(-.04)+1.4*(.03)+3.3*(.0025)+.6*(37)+1*(.4) = 22.6983Related Questions
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