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In the formula for Z-score for predicting bankruptcy was published by Edward Altman which of the following does not appear? O Earnings Before Interest and Taxes / Total Assets O Market value of Equity / Book Value of Total Liabilities O Times interest earned O Sales/

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In the formula for Altman Z-score for predicting bankruptcy, Times interest earned does not appear.

How  Altman Z-score is calculated?

  • The Altman Z-score, a statistical variant of the conventional z-score, is based on five financial measures that may be computed using information from a firm's annual 10-K report. It determines whether a corporation has a high likelihood of going bankrupt using leverage, profitability, solvency, liquidity, and activity.
  • It is especially used for manufacturing sectors.
  • A corporation may be on the verge of bankruptcy if its Altman Z-score is close to zero, while a score nearer to three indicates good financial standing.

              Altman Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Where,

A = working capital / total assets

B = retained earnings / total assets

C = earnings before interest and tax / total assets

D = market value of equity / total liabilities

E = sales / total assets

To know more about Altman Z-score, check out:

brainly.com/question/22223063

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