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

Working capital/Total assets ratio (X1) = 0.75 Retained earnings/Total assets ratio (X2) = 0.10 Earnings before interest and taxes/Total assets ratio (X3) = 0.05 Market value of equity/Book value of total liabilities (X4) = 0.10 Sales/Total assets ratio (X5) = 0.65 Calculate Altman’s Z score for the borrower in question. How is this number a sign of the borrower’s default risk?