1. Are there industries where the Z-Score doesn't worksay, for instance, financial companies, whose balance sheets are different than most companies?
2. When Edward Altman originally created the model, it was designed to predict bankruptcy within a two-year period? Can the Z-Score predict bankruptcy ahead of 2 years? What is the level of accuracy?
3. If the Z-Score is low and the actual bond rating is in junk range, that would be a sign that a company is very risky. If the Z-score is low, but the actual bond rating is, say, a BB+, does that mean that you should be fine?
4. If the Z-Score is high and the actual bond rating is in investment grade range, that would be a sign that a company is not risky