D. The Graham Model (continued)
2. Group B Criteria
#6: CR > 2 (1 pt.)
CR > 1.8 (1/2 pt.)
#7: TD/E < 1.0 (1 pt.)
TD/E < 1.2 (1/2 pt)
#8: TD/NCA < 2 (1 pt.)
NCA > 0 (1/2 pt.)
#9: G10 > 7%/YR. (1 pt.)
G5 > 7%/YR. (1/2 pt.)
#10: No more than 2 declines in earnings of 5% each over the last 10 years for one full point.
No more than 3 declines in earnings of 5% or more in last 10 years for one-half point.