anking and finance - S1 2017 Department of Banking and Finance S1 2017 BFF2401-S1 2017 ONLINE TESTS Online test B Question 4 Not yet answered Marked out of 1.00 PFlag question Altman's discriminant function takes the form: Z=1.2 Working capital/Total assets + 1.4 Retained earnings/Total assets + 3.3 EBIT/Total assets + 0.6 Market value of equity/Long-term debt +1.0 Sales/Total assets Critical values of Z=1.81 and Z-2.99. Which of the following statements in relation to Altman's discriminant function is TRUE? Select one: O a. The Altman Z score model always produces an exact reject or accept decision. b. The loan size does not influence the result of the Altman Z score model. O c. The higher the Z score the higher the probability of default O d. The size of the borrower does not influence the result of the Altman Z score model. Previous page