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Submitted By blaine

Words 348

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Words 348

Pages 2

Where X.sub.2 = Retained Earnings/Total Assets. This is a measure of cumulative profitability that reflects the firm's age as well as earning power. Many studies have shown failure rates to be closely related to the age of the business.

Where X.sub.3 = Earnings Before Income Taxes/Total Assets. This is a measure of operating efficiency separated from any leverage effects. It recognizes operating earnings as a key to long-run viability.

Where X.sub.4 = Market Value of Equity/Book Value of Debt. This ratio adds a market dimension. Academic studies of stock markets suggest that security price changes may foreshadow upcoming problems.

Where X.sub.5 = Sales/Total Assets. This is a standard turnover measure. Unfortunately, it varies greatly from one industry to another.

We take the data from Yahoo Finance for year ended Dec 31, 2007

Sub 1 = Working Capital/Total Assets

Current Assets 60,430

Current Liabilities 70,338

Working Capital (9,908)

Total Assets 148,883

Sub 1 -6.65%

Sub 2 = Retained earnings/Total Assets

Retained earnings (39,392)

Sub 2 -26.46%

Sub 3 = Earnings Before Income Taxes/Total Assets

Earnings Before Income Taxes -6253

Sub 3 -4.20%

Sub 4 = Market value of Equity/Book Value of debt

Market Value of equity 11,040

Total Debt 44,603

Sub 4 0.25

Sub 5 = Sales / Total Assets

Sales 181122

Sub 5 1.22 Z-Score 0.78

GM Bankrupt Non bankrupt

Sub 1 -6.65% -6.10% 41.40%

Sub 2 -26.46% -62.60% 35.50%

Sub 3 -4.20% -31.80% 15.40%

Sub 4 25.00% 40.10%…...

...Z Score Model analysis of Tecumseh Products Company | BY: Shelly Koeck September 24, 2012 Tecumseh Products Company is an industrial goods company that manufactures hermetically-sealed compressors for residential and specialty air conditioning, home refrigerators and freezers, and commercial refrigeration. Tecumseh competes in the same arena as General Electric Company. Tecumseh Products Company employees 6,100 people and are located in Ann Arbor, MI. The company currently has 18.48 M outstanding shares of which 311.16 K shares are at this time shorted by private and institutional investors with about 12.8 days to cover all short positions. Tecumseh has accumulated about 46.2M in cash with 7.8 M of positive cash flow from operations. The Z-Score is a multi-factor model that measures the financial health and economic stability of a company. The score is then used to predict the probability of a firm going into bankruptcy within the next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University. The factors that make up the algorithm are: First Factor: Working Capital / Total Assets = 101.1M/562.5M = .18 Second Factor: Retained Earnings / Total Assets = 317.9M/562.5M= .57 Third Factor: EBITDA / Total Assets= (22.4M)/562.5M= (.04) Fourth Factor: Market Value of......

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...Index | S/N | Topics | Page No. | 1 | ACKNOWLEDGEMENT | 00 | 2 | Initialization | 01 | 3 | Managerial Decision | 02 | 4 | Z- Score Analyze | 03 | 5 | Z – Score from Financial Statement | 03-09 | 6 | Result Verification | 10 | 7 | Reference | 00 | Initialization Bangladesh Development Bank Limited (BDBL) Bangladesh Development Bank Limited (BDBL) is fully state owned Commercial Bank of Bangladesh. In addition commercial banking, BDBL provides financial and technical assistance to broaden the private as well as public sector industrial base of the country. It prioritizes, especially, Export Oriented/Export Linkage industrial units, Efficient Import Substitution, Joint Ventures, Commercialization of local technology and promotion of agro-based industry. Vision, Mission, Values of the Bank: Vision: To emerge as the country’s prime Financial Institution for supporting private sector industrial and other projects of great significance to the country’s economic development. Also be active participant in commercial banking by introducing new lines of product and providing excellent services to the customers. Mission: * To be competitive with other Banks and Financial Institutions in rendering services ; * To contribute to the country’s socio-economic development by identifying new and profitable areas for investment ; * To mobilize deposit for productive investment ; * To expand branch network in commercially and geographically important......

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...PREDICTING FINANCIAL DISTRESS OF COMPANIES: REVISITING THE Z-SCORE AND ZETA® MODELS Edward I. Altman* July 2000 *Max L. Heine Professor of Finance, Stern School of Business, New York University. This paper is adapted and updated from E. Altman, “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy,” Journal of Finance, September 1968; and E. Altman, R. Haldeman and P. Narayanan, “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations,” Journal of Banking & Finance, 1, 1977. Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA® Models Background This paper discusses two of the venerable models for assessing the distress of industrial corporations. These are the so-called Z-Score model (1968) and ZETA® 1977) credit risk model. Both models are still being used by practitioners throughout the world. The latter is a proprietary model for subscribers to ZETA Services, Inc. (Hoboken, NJ). The purpose of this summary are two-fold. First, those unique characteristics of business failures are examined in order to specify and quantify the variables which are effective indicators and predictors of corporate distress. By doing so, I hope to highlight the analytic as well as the practical value inherent in the use of financial ratios. Specifically, a set of financial and economic ratios will be analyzed in a corporate distress prediction context using a multiple discriminant statistical methodology.......

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...Z-Scores A z-score, which is symbolized as z, is the statistic that relates the distance a score is relative to its mean when measured in standard deviation (SD) units (Heiman, 2012). The importance of a z-score is that it enables one to analyze data relative to scores. Z-Scores allow us to determine whether a particular score is equal to the mean, below the mean or above the mean of a bunch of scores, and how far a particular score is away from the mean. Evaluating the scores of Eric’s to determine different z-scores, we use the following computations that he computed where it takes a mean of 17 minutes with a standard deviation of 3 minutes to drive from home, park the car, and walk to his job. , Next we determine the z-score relative to the mean and the SD, to analyze the difference in time to accomplish these steps on different days. One day it took Eric 21 minutes to get to work, and computing the means from the minutes by the SD results in a z of +1.33, which tells you that Eric's time to get to work is 1.33 standard deviations from the mean. The z is positive because it is above the mean, and demonstrates that it took longer for Eric to leave home, park his car and walk to his job when the raw value of time was 21 minutes. On another day in which it took Eric 12 minutes to get to work, the z value resulted -1.66, demonstrating that the time it took Eric to get to work was below the mean, or it took less time. Observing the time in comparison to the mean, it is......

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...Explain when a z-test would be appropriate over a t-test. A Z-test is any statistical test for which the distribution of the test statistic under the null hypothesis can be approximated by a normal distribution. Because of the central limit theorem, many test statistics are approximately normally distributed for large samples. For each significance level, the Z-test has a single critical value (for example, 1.96 for 5% two tailed) which makes it more convenient than the Student's t-test which has separate critical values for each sample size. Therefore, many statistical tests can be conveniently performed as approximate Z-tests if the sample size is large or the population variance known. If the population variance is unknown (and therefore has to be estimated from the sample itself) and the sample size is not large (n < 30), the Student's t-test may be more appropriate. Nuisance parameters should be known, or estimated with high accuracy. Z-tests focus on a single parameter, and treat all other unknown parameters as being fixed at their true values. The test statistic should follow a normal distribution Z-test and T-test are statistical tests used to determine whether two population means are different. Z- test is applied when the variances are known and the sample size is large (n 30), the standard deviation is unknown while z-tests assume that it is known. Z-test has a single critical value which makes it more convenient than the t-test which has separate critical......

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...A – Z compilation A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z A | B | C | D | E | F | G | H | I | J |...

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...Z-Scores Application 1. The graduate selection committee wants to select the top 10% of applicants. On a standardized test with a mean of 500 and a standard deviation of 100, what would be the cutoff score for selecting the top 10% of applicants, assuming that the standardized test is normally distributed? 2. The average commute time via train from the Chicago O'Hare Airport to downtown is 60 minutes with a standard deviation of 15 minutes. Assume that the commute times are normally distributed. What proportion of commutes would be: a. longer than 80 minutes? b. less than 50 minutes? c. between 45 and 75 minutes? 3. Bob takes an online IQ test and finds that his IQ according to the test is 134. Assuming that the mean IQ is 100, the standard deviation is 15, and the distribution of IQ scores is normal, what proportion of the population would score higher than Bob? Lower than Bob? Z-scores are statistical tools for determining relative performance and comparison across different tests and results (Steinberg, 2011). Z-score helps to re-scale any raw data into standard deviation units. Therefore, different combinations of raw results transform to easy-for-comparison data. 1. Solution: A) Find the z-score, which is separating 10% of the best results. B) Find the value of X Z= (X-Mean)/ 100 Z for 10% or 0.1 from the table Appendix A (Steinberg, 2011) is 1.28 1.28 = (X-500)/100, Therefore X = (1.28 x 100) + 500 = 628 This score (628) separates 10% of the...

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...Summary Z-Wing is a military and a commercial aircraft manufactured one of the larges in the world. At this moment Z-Wing is the leader of the market. Janssen is the biggest competitor of Z-Wing. Z-Wig needs to keep its position on the market and not o lose more percent on the aircraft market. This analysis will show a description of the product and service of what Z-Wing need to work to stay as market leader. The company will focus on the marketing of new planes and services to the airlines. What is the target customer and what opportunity on new areas that Z-Wing can expand. Will show how or competition is doing in the market, what products and service is offering. Is truly important is that is going to give us a view on how the market is doing in areas like demographics, market size, statistical income and how is growing, this information will help Z-Wing to see what threats and opportunities can confront. Its will evaluate the financial status and forecast the sales and expenses that Z-Wing expects with this new products and services. This will describe how Z-Wing expects to distribute, promote, pricing the products and service. Additional to this Z-Wing is going to implement a CRM (Customer Relationship Management) system that ill help improve customer service and will provide data information to help move forward with the market strategies. This will be help on the customer needs, customer support system and marketing efforts. Situation Analysis Z-Wing......

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...Clinical research The SYNTAX Score: an angiographic tool grading the complexity of coronary artery disease Georgios Sianos1, MD, PhD; Marie-Angèle Morel2, BSc; Arie Pieter Kappetein3, MD, PhD; Marie-Claude Morice4, MD; Antonio Colombo5, MD; Keith Dawkins6, MD; Marcel van den Brand7, MD, PhD; Nic Van Dyck8, RN; Mary E Russell9, MD; Friedrich W. Mohr10, MD; Patrick W Serruys1* MD, PhD 1. Department of Interventional Cardiology, Erasmus Medical Center, Thoraxcenter Rotterdam, The Netherlands 2. Cardialysis BV, Rotterdam, The Netherlands 3. Department of Cardiothoracic Surgery, Erasmus Medical Center, Thoraxcenter, Rotterdam, The Netherlands 4. Institut Cardiovasculaire Paris Sud, Massy, France 5. San Raffaele Hospital, Milano, Italy 6. Southampton General Hospital, Southampton, UK 7. Ouderkerk aan den ijssel, The Netherlands 8. Boston Scientific Corporation, Maastricht, The Netherlands 9. Boston Scientific Corporation, Natick Massachusetts, USA 10. Herzzentrum, Leipzig, Germany Introduction Optimal revascularization strategy in patients with coronary artery disease remains a subject of debate between interventional cardiologists and surgeons. Numerous large scale randomized trials addressed this issue comparing coronary artery bypass grafting (CABG) with percutaneous coronary intervention (PCI) in patients with multivessel disease (MVD). Initially these trials compared multivessel balloon angioplasty with CABG1-6 and in a later period multivessel......

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...z-Score Chart (similar to Table A-2 in text) Negative z-scores: | z | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.0 | -3.4 | 0.0002 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | -3.3 | 0.0003 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0005 | 0.0005 | 0.0005 | -3.2 | 0.0005 | 0.0005 | 0.0005 | 0.0006 | 0.0006 | 0.0006 | 0.0006 | 0.0006 | 0.0007 | 0.0007 | -3.1 | 0.0007 | 0.0007 | 0.0008 | 0.0008 | 0.0008 | 0.0008 | 0.0009 | 0.0009 | 0.0009 | 0.0010 | -3.0 | 0.0010 | 0.0010 | 0.0011 | 0.0011 | 0.0011 | 0.0012 | 0.0012 | 0.0013 | 0.0013 | 0.0013 | -2.9 | 0.0014 | 0.0014 | 0.0015 | 0.0015 | 0.0016 | 0.0016 | 0.0017 | 0.0018 | 0.0018 | 0.0019 | -2.8 | 0.0019 | 0.0020 | 0.0021 | 0.0021 | 0.0022 | 0.0023 | 0.0023 | 0.0024 | 0.0025 | 0.0026 | -2.7 | 0.0026 | 0.0027 | 0.0028 | 0.0029 | 0.0030 | 0.0031 | 0.0032 | 0.0033 | 0.0034 | 0.0035 | -2.6 | 0.0036 | 0.0037 | 0.0038 | 0.0039 | 0.0040 | 0.0041 | 0.0043 | 0.0044 | 0.0045 | 0.0047 | -2.5 | 0.0048 | 0.0049 | 0.0051 | 0.0052 | 0.0054 | 0.0055 | 0.0057 | 0.0059 | 0.0060 | 0.0062 | -2.4 | 0.0064 | 0.0066 | 0.0068 | 0.0069 | 0.0071 | 0.0073 | 0.0075 | 0.0078 | 0.0080 | 0.0082 | -2.3 | 0.0084 | 0.0087 | 0.0089 | 0.0091 | 0.0094 | 0.0096 | 0.0099 | 0.0102 | 0.0104 | 0.0107 | -2.2 | 0.0110 | 0.0113 | 0.0116 | 0.0119 | 0.0122 | 0.0125 | 0.0129 | 0.0132 | 0.0136 | 0.0139 | -2.1 | 0.0143 | 0.0146 | 0.0150 | 0.0154 | 0.0158 | 0.0162 |......

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...z-Score Chart (similar to Table A-2 in text) Negative z-scores: | z | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.0 | -3.4 | 0.0002 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | 0.0003 | -3.3 | 0.0003 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0004 | 0.0005 | 0.0005 | 0.0005 | -3.2 | 0.0005 | 0.0005 | 0.0005 | 0.0006 | 0.0006 | 0.0006 | 0.0006 | 0.0006 | 0.0007 | 0.0007 | -3.1 | 0.0007 | 0.0007 | 0.0008 | 0.0008 | 0.0008 | 0.0008 | 0.0009 | 0.0009 | 0.0009 | 0.0010 | -3.0 | 0.0010 | 0.0010 | 0.0011 | 0.0011 | 0.0011 | 0.0012 | 0.0012 | 0.0013 | 0.0013 | 0.0013 | -2.9 | 0.0014 | 0.0014 | 0.0015 | 0.0015 | 0.0016 | 0.0016 | 0.0017 | 0.0018 | 0.0018 | 0.0019 | -2.8 | 0.0019 | 0.0020 | 0.0021 | 0.0021 | 0.0022 | 0.0023 | 0.0023 | 0.0024 | 0.0025 | 0.0026 | -2.7 | 0.0026 | 0.0027 | 0.0028 | 0.0029 | 0.0030 | 0.0031 | 0.0032 | 0.0033 | 0.0034 | 0.0035 | -2.6 | 0.0036 | 0.0037 | 0.0038 | 0.0039 | 0.0040 | 0.0041 | 0.0043 | 0.0044 | 0.0045 | 0.0047 | -2.5 | 0.0048 | 0.0049 | 0.0051 | 0.0052 | 0.0054 | 0.0055 | 0.0057 | 0.0059 | 0.0060 | 0.0062 | -2.4 | 0.0064 | 0.0066 | 0.0068 | 0.0069 | 0.0071 | 0.0073 | 0.0075 | 0.0078 | 0.0080 | 0.0082 | -2.3 | 0.0084 | 0.0087 | 0.0089 | 0.0091 | 0.0094 | 0.0096 | 0.0099 | 0.0102 | 0.0104 | 0.0107 | -2.2 | 0.0110 | 0.0113 | 0.0116 | 0.0119 | 0.0122 | 0.0125 | 0.0129 | 0.0132 | 0.0136 | 0.0139 | -2.1 | 0.0143 | 0.0146 | 0.0150 | 0.0154 | 0.0158 | 0.0162 |......

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... Investment Valuation Assignment On Altman’s Z-Score Submitted By: A Sreekanth Vidyasagar Garvit Sharma A Dixit Altman Z-score The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years. Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company. Z score bankruptcy model: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + .999X5 Explanation X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors...

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...is important to note that the answers to these questions may be different for each of you since you are each using unique sets of data. PSY 325 Week 2 DQ1 Graphs Give one example of health-related data (a variable) that can be represented by a pie chart. Do the same for a bar chart and a histogram. Explain why each data example you selected (there will be a total of three different variables) is well represented by the corresponding graph. PSY 325 Week 2 DQ2 Standard Normal Distribution and the z-Score Review Chapter 3 of your course text, which introduces probability and the standard normal distribution, and view the Z-Score video clip from the Films On Demand database in the library. Provide a description of the meaning and use of the z-score. Give an example that illustrates your answer. PSY 325 Week 3 DQ1 Choose the Analysis A researcher wishes to study the effect of a new drug on blood pressure. Would you recommend using a z-test, a t-test, or an A.N.O.V.A. for the analysis? Explain your answer. What would your choice of test depend on? For the test you select, explain your design and your comparison groups. Would the hypothesis be directional or non-directional? Would the test be one-tailed or two-tailed? What would be the null and what would be the alternative hypothesis? PSY 325 Week 3 DQ2 Repeated Measures Review Chapter 7 of your course text, which reviews inferential statistics that analyze experiments of......

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...THE A-TO-Z OFFICE SUPPLY COMPANY INTORDUCTION Christine Yamaguchi, the manager of the A-to-Z Office Supply Company, attempts to gain an advantage over its competitors by providing quality customer service, which includes to meet the customers need and to provide the prompt delivery. The company has to maintain a large volume stock at their central warehouse and at the three retail stores. In order to maintain the stock, Christine borrows cash on a daily basis from the First Piedmont Bank. The data provided by Christine is that the company’s demand for cash to pay for inventory will be $17,000 per day for 305 working days for the coming fiscal year. The money she borrows during the year must be repaid with 9% interest rate by the end of the year. The bank also charges the company a loan origination fee of $1,200 plus 2.25% ………. Christine wants to determine an optimal borrowing policy with the use of the EOQ analysis method. She also wants to determine the amount of the loan she should secure from the bank, the total annual cost of the company’s borrowing policy, and the number of loans the company should obtain during the year. She also wants to know the level of the cash on hand at which the company should apply for a new loan when it takes 15 days for the process. In addition, she wants to know the company’s optimal loan amount in case the bank offers a discount of 0.25% by lowering down the points charged from 2.25% to 2.00% if any loan amount exceeds......

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...A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z A b c d e f g h I j k l m n o p q r s t u v w x y z...

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