Shark Finance Company has received a credit application from a private company Mongolian Dairy. An...

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Finance

Shark Finance Company has received a credit application from a private company Mongolian Dairy. An abbreviated portion of the financial information provided by the company is shown below:

Total assets $64,000

EBIT 6,900

Net working capital 4,400

Book value of equity 16,000

Accumulated retained earnings 12,000

Total liabilities 57,000

What is the Z-score for Mongolian Dairy? What does the score value predict?

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