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2. Suppose that the financial ratios of a potential borrowing firm took the following values: X 1 = Net working capital/Total assets = 0.40, X

2. Suppose that the financial ratios of a potential borrowing firm took the following values: X1 = Net working capital/Total assets = 0.40, X2 = Retained earnings/Total assets = 0.50, X3 = Earnings before interest and taxes/Total assets = 0.18, X4 = Market value of equity/Book value of long-term debt = 0.50, X5 = Sales/Total assets ratio = 0.8. Calculate the Altmans Z-score for this firm.

Altmans Z-score=?

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