AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 49 Topic 3 Discussion

AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 49 Topic 3 Discussion

CCRA-L2 Exam Topic 3 Question 49 Discussion:
Question #: 49
Topic #: 3

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?


A.

Exactly Four


B.

Exactly One


C.

Exactly Two


D.

Exactly Three


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