10–7. implied contracts. ralph ramsey insured his car with allstate insurance co. he also owned a house on which he maintained a homeowner's insurance policy with allstate. bank of america had a mortgage on the house and paid the insurance premiums on the homeowner's policy from ralph's account. after ralph died, allstate canceled the car insurance. ralph's son douglas inherited the house. the bank continued to pay the premiums on the homeowner's policy, but from douglas's account, and allstate continued to renew the insurance. when a fire destroyed the house, allstate denied coverage, however, claiming that the policy was still in ralph's name. douglas filed a suit in a federal district court against the insurer. was allstate liable under the homeowner's policy? explain. [ramsey v. allstate insurance co., 2013 wl 467327 (6th cir. 2013)]

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.