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Arrange the following ratios in the increasing order of their significance in the prediction of industrial sickness (Altman, 1966): Choose the correct
Question



Arrange the following ratios in the increasing order of their significance in the prediction of industrial sickness (Altman, 1966):

Choose the correct answer from the options given below

A.

D, E, A, B, C

B.

C, E, B, D, A

C.

B, D, C, A, E

D.

E, B, D, C, A

Correct option is A

The increasing order of significance of the ratios in the prediction of industrial sickness according to Altman (1966) is: d) Market Value of Equity / Book Value of Total Debt e) Sales / Total Assets a) Working Capital total assets / Total Assets b) Retained Earnings / Total Assets c) Earnings Before Interest and Taxes / Total Assets So, the correct order is d, e, a, b, c.

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