Calculate the altman z-score for the firm

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Suppose that the financial ratios of a potential borrowing firm took the following values:

X12345 = Net working capital/Total assets = .21, X = Retained earnings/Total assets = .7, X = Earnings before interest and taxes/Total assets = .21, X = Market value of equity/Book value of long-term debt = 1.0, X = Sales/Total assets ratio = 1.4.

Problem 1: Calculate the Altman's Z-score for this firm

Reference no: EM132904066

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