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Mr. Gopi, while teaching the CCRA course to students described Altman's Model and stated that following variables do exist for Altman's Model:
1. total debt/total assets,
2. retained earnings/total assets.
3. earnings before interest and taxes/total assets,
4. market value equity/book value of total liabilities,
5. sales/total assets
Exactly how many variables are incorrectly identified?
Suggested Answer: A
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29 comments · newest first
DO
Donte
7 months ago
I’m leaning towards four being incorrect.
AN
Annamae
7 months ago
I remember learning about three variables being wrong.
AR
Art
7 months ago
I thought it was exactly one.
LE
Lenna
7 months ago
I agree with Shawnda, two seems right.
RI
Rickie
7 months ago
I feel confused about the variables.
SH
Shawnda
7 months ago
I think it's exactly two.
RE
Refugia
8 months ago
I think it's exactly two that are incorrect.
FR
Frederick
8 months ago
I agree, it's definitely more than one wrong.
LO
Lorenza
8 months ago
Wait, are you sure about that?
GR
Gracia
9 months ago
I thought it was just one variable off!
RO
Rose
9 months ago
There are actually five variables in Altman's Model.
EZ
Ezekiel
9 months ago
Haha, Mr. Gopi must be testing us on our Altman's Model knowledge. I bet he's enjoying this!
DO
Dorthy
9 months ago
Ah, I see what's going on here. This is a tricky one, but I think I've got it figured out.
EN
Enola
9 months ago
I feel like I might have seen three of these variables in the model, but I can't confidently say which ones are incorrect.
TO
Tommy
9 months ago
I practiced a similar question last week, and I think the total debt/total assets ratio is actually part of the model, so maybe it's just one or two that are wrong?
EL
Elise
10 months ago
I recall that Altman's Z-score has five variables, but I’m not sure if all of these listed are correct.
DE
Denny
10 months ago
I think there are definitely some variables that are not part of Altman's Model, but I can't remember exactly how many.
BE
Benedict
10 months ago
This is a good opportunity to apply my knowledge of financial analysis models. I'll methodically go through the variables and compare them to what I know about Altman's Model.
LA
Lawrence
10 months ago
Ah, I see where the confusion might be. I'll need to carefully review the details of Altman's Model to determine which variables are incorrect.
AH
Ahmed
10 months ago
The variables seem pretty straightforward, but I'm not sure if I'm missing something.
JA
Jaime
11 months ago
Okay, let me think this through. The variables listed seem familiar, but I want to double-check to make sure I have the right information.
AN
Annette
11 months ago
Hmm, I think I remember there being a few more variables in Altman's Model. Let me double-check that.
JO
Joesph
11 months ago
Hmm, I'm a bit unsure about this one. I know Altman's Model has some financial ratios, but I can't quite remember all the details.
LO
Lonna
12 months ago
This looks like a straightforward question on Altman's Model. I'm pretty confident I can identify the incorrect variables.
NI
Nikita
6 months ago
Let's stick with one for now.
KA
Kanisha
6 months ago
What if it's two?
LA
Lavonda
6 months ago
I agree, one seems right.
KI
Kip
11 months ago
I think it's exactly one variable that's incorrect.
LE
Lenny
11 months ago
I feel like it could be three.