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Question
Suppose that the financial ratios of a potential borrowing firm took the following values:
X1 = 0.30
X2 = 0
X3 = -0.30
X4 = 0.15
X5 = 2.1
Altman's discriminant function takes the form:
Z = 1.2 X1+ 1.4 X2 + 3.3 X3 + 0.6 X4 + 1.0 X5
The Z score for the firm would be
A. 1.64.
B. 1.56.
C. 2.1.
D. 3.54.
E. 2.96.
Answer
This answer is hidden. It contains 82 characters.
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