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Calculate the altman z score for this firm

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Question - Suppose that the financial ratios of a potential borrowing firm took the following values: x1 = Net working capital/Total assets = 0.10, x2 = Retained earnings/Total assets = 0.20, x3 = Earnings before interest and taxes/Total assets = 0.22, x4 = Market value of equity/Book value of long-term debt = 0.60, x5 = Sales/Total assets ratio = 0.9. Calculate the Altman's Z score for this firm.

Reference no: EM133164625

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