Assignment Of Corporate Finance
Assignment of corporate finance
If we need to find Z score of Fu-Wang ceramic industry ltd. Then at first we should know the formula of Z score.
The formula of Z score is
Z = 3.3(EBIT/Total Assets) + 1.2(Net Working Capital/Total Assets) + 1.0(Sales/Total Assets) + .6(Market Value of Equity/Book Value of Debt) + 1.4(Accumulated retained earnings/Total Assets)
Now we are going to determining the Z score of Fu-Wang ceramic industry ltd. In the year of 2010
As we know the formula of Z score below
Z = 3.3(EBIT/Total Assets) + 1.2(Net Working Capital/Total Assets) + 1.0(Sales/Total Assets) + .6(Market Value of Equity/Book Value of Debt) + 1.4(Accumulated retained earnings/Total Assets)
2010 Z = 3.3(33483612/ 867904980) +1.2(-99836256/ 867904980) + 1.0(428081147/867904980) + .6(459044347/-408806633) + 1.4(37083814/867904980)
Z = 3.3*0.0385798131956796 + 1.2*-0.1150313205945655 + 1.0*0.0427279654507801+ .6*-1.122888696 + 1.4*0.0427279654507801
Z = 0.1273133835457427-0.1380375847134786+0.0427279654507801-0.6737332176+0.0598191516310921
Z = -0.5819103016858637
2011 Z = 3.3(93118872/ 1108943632) + 1.2(335620262/1108943632) + 1.0(607801483/1108943632) + .6(909857428/199086204) + 1.4(84594996/1108943632)
Z = 3.3*0.0839707892384561 + 1.2*0.3026486219093957 + 1.0*0.5480905119621085+ .6*4.570168146859639 + 1.4*0.0762843065769099
Z = 0.2771036044869051 + 0.3631783462912748 + 0.5480905119621085 + 2.742100888115783 + 0.1067980292076739
Z = 4.037271380063745
2012 Z = 3.3(149234805/1312046978) + 1.2(166719583/1312046978) + 1.0(744109070/1312046978) + .6(1019333412/292713566) + 1.4(130500440/1312046978)
Z = 3.3*0.1137419677056716 + 1.2*0.1270683030375457 + 1.0*0.567135996253939 + .6*3.482357944421339 + 1.4*0.099463237359783
Z = 0.3753484934287163 + 0.1524819636450548 + 0.567135996253939 + 2.089414766652803 + 0.1392485323036962
Z = 3.323629752284209
2013 Z = 3.3(84694257/1419941949) + 1.2(245798197/1419941949) + 1.0(739114427/1419941949) + .6(1074347802/345594147) +
If we need to find Z score of Fu-Wang ceramic industry ltd. Then at first we should know the formula of Z score.
The formula of Z score is
Z = 3.3(EBIT/Total Assets) + 1.2(Net Working Capital/Total Assets) + 1.0(Sales/Total Assets) + .6(Market Value of Equity/Book Value of Debt) + 1.4(Accumulated retained earnings/Total Assets)
Now we are going to determining the Z score of Fu-Wang ceramic industry ltd. In the year of 2010
As we know the formula of Z score below
Z = 3.3(EBIT/Total Assets) + 1.2(Net Working Capital/Total Assets) + 1.0(Sales/Total Assets) + .6(Market Value of Equity/Book Value of Debt) + 1.4(Accumulated retained earnings/Total Assets)
2010 Z = 3.3(33483612/ 867904980) +1.2(-99836256/ 867904980) + 1.0(428081147/867904980) + .6(459044347/-408806633) + 1.4(37083814/867904980)
Z = 3.3*0.0385798131956796 + 1.2*-0.1150313205945655 + 1.0*0.0427279654507801+ .6*-1.122888696 + 1.4*0.0427279654507801
Z = 0.1273133835457427-0.1380375847134786+0.0427279654507801-0.6737332176+0.0598191516310921
Z = -0.5819103016858637
2011 Z = 3.3(93118872/ 1108943632) + 1.2(335620262/1108943632) + 1.0(607801483/1108943632) + .6(909857428/199086204) + 1.4(84594996/1108943632)
Z = 3.3*0.0839707892384561 + 1.2*0.3026486219093957 + 1.0*0.5480905119621085+ .6*4.570168146859639 + 1.4*0.0762843065769099
Z = 0.2771036044869051 + 0.3631783462912748 + 0.5480905119621085 + 2.742100888115783 + 0.1067980292076739
Z = 4.037271380063745
2012 Z = 3.3(149234805/1312046978) + 1.2(166719583/1312046978) + 1.0(744109070/1312046978) + .6(1019333412/292713566) + 1.4(130500440/1312046978)
Z = 3.3*0.1137419677056716 + 1.2*0.1270683030375457 + 1.0*0.567135996253939 + .6*3.482357944421339 + 1.4*0.099463237359783
Z = 0.3753484934287163 + 0.1524819636450548 + 0.567135996253939 + 2.089414766652803 + 0.1392485323036962
Z = 3.323629752284209
2013 Z = 3.3(84694257/1419941949) + 1.2(245798197/1419941949) + 1.0(739114427/1419941949) + .6(1074347802/345594147) +