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a. Calculate Altman's Z-score for each company and rate each company as falling, healthy, or indeterminate. DuPont Dow 1.35 1. 22 1 0. 61 0

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a. Calculate Altman's Z-score for each company and rate each company as falling, healthy, or indeterminate. DuPont Dow 1.35 1. 22 1 0. 61 0 0.35 3. 533 Healthy Healthy 6.56 x Working Capital/Total Assets 3.26 x Retained Earnings / Total Assets 6.72 x EBIT/Total Assets 1.05 x BV of Equity / BV of Debt Z-score Category 0.92 .30 0.39 PPG 0.91 . 24 3 .44 0.51 .10 Healthy Under the more recent Altman Z score model, the Z-score cuti b. 2016 bond ratings for the chemical companies are: Less than 1.1-Bankrupt 1.10 to 2.6-Gray Area Greater than 2.6-Healthy DuPont PPG Moody's Standard & Poor's Dow Baa2 BBB A Evaluate the credit worthiness of these companies. Use Altman's Z-score, bond ratings, and previous financial analysis and rate the companies on a 1-10 Rating Explanation Du Pont Dow PPG c. Are the signals from Altman's Z-score and bond ratings consistent? Explain. a. Calculate Altman's Z-score for each company and rate each company as falling, healthy, or indeterminate. DuPont Dow 1.35 1. 22 1 0. 61 0 0.35 3. 533 Healthy Healthy 6.56 x Working Capital/Total Assets 3.26 x Retained Earnings / Total Assets 6.72 x EBIT/Total Assets 1.05 x BV of Equity / BV of Debt Z-score Category 0.92 .30 0.39 PPG 0.91 . 24 3 .44 0.51 .10 Healthy Under the more recent Altman Z score model, the Z-score cuti b. 2016 bond ratings for the chemical companies are: Less than 1.1-Bankrupt 1.10 to 2.6-Gray Area Greater than 2.6-Healthy DuPont PPG Moody's Standard & Poor's Dow Baa2 BBB A Evaluate the credit worthiness of these companies. Use Altman's Z-score, bond ratings, and previous financial analysis and rate the companies on a 1-10 Rating Explanation Du Pont Dow PPG c. Are the signals from Altman's Z-score and bond ratings consistent? Explain

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