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Question

The net liquidation value of a firm is the best indicator of its financial health. This is the proposal of ____________.

A
Beaver model
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B
L C Gupta model
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C
Wilcox model
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D
Altman's Z score model
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E
None of the above
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Solution

The correct option is C Wilcox model
Wilcox proposed that the net liquidation value of the firm is the best indicator of its financial health. The net liquidation value can be obtained by the difference in liquidation value of a firms assets and the liquidation value of its liabilities.

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