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Strategies & Market Trends : Bankruptcy Predictor Model -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (22)	3/15/1999 12:26:00 PM
From: Razorbak	Read Replies (1) \| Respond to of 477

Market Cap/Cash Burn <<The ratio value of equity / book value of total debt might make sense for a company that had operations, but I think for developing stage companies it doesn't make nearly as much sense as market cap / cash burn.>> Good point. No predictive model is ever perfect, and this may very well be a limitation of the model. If I get some free time, I may ask Altman for an opinion on the issue that you have raised. In the meantime, feel free to run a couple of test companies through the model and post the results. Then we can talk about some specific cases. Thanks again for your input. Razor