Z-score = [1.2*(WK/TA)]+[1.4*(RE/TA)]+[3.3*(EBIT/TA)]+[0.6*(MVE/TL)]+[0.
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# Z-score = [1.2*(WK/TA)]+[1.4*(RE/TA)]+[3.3*(EBIT/TA)]+[0.6*(MVE/TL)]+[0.99*(Sales/TA)] />CA=\$78,719; CL=\$24,911; TL=\$58,067; TA=\$121,652; RE=\$19,396; # of Shares issued and outstanding= 5,029; Price per share=\$30.53; Sales=\$49,247; EBIT=\$12,660;The Z-score for SOPHOPHOBIA is calculated as 3.083.The company has a large amount of liquid investments reported as current assets.What would be the effect on the company's Z-score of selling \$30,000 of investments and using the proceeds to pay \$10,000 of dividends and \$20,000 of long-term debt? [That is, recalculate the Z-score and comment on it. If it has changed, explain why]. Assume that the company's market value would decrease by \$30,000(in addition to any balance sheet effects).Also assume that there are no income statement effects.

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