Financial Risk

Search the Internet for a publicly traded company that filed for bankruptcy protection within the past two years.

Review the most recent financial information for the company.

1)Evaluate the financial “red flags” that should have served as early indicators that the company was having financial difficulty.

2)Are there steps that management could have taken earlier to address the issues and possibly save the company from bankruptcy?

3) Based on the bankruptcy prediction models examined in the reading, would they have been effective in predicting this bankruptcy? Provide support for your rationale.

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