What is the Z score for ABC Company

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Problem 1: What is the Z score for ABC Company according to Altman's linear discriminant model based on the key financial ratios from last year's financial statements.

Working Capital/Total Assets = X1 = 0.1
Retained Earnings/Total Assets = X2 = 0.3
Earnings Before Interest and Taxes/Total Assets = X3 = -0.4
Market Value of Equity/BV of Total Liabilities = X4 = 0.4
Sales/Total Assets = X5 = 3.4

Reference no: EM132701547

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