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Calculation of Altman's Z-Score: Suppose that the financial ratios of a potential borrowing firm took the following values: X1= Net working capital/Total assets = 25,
Calculation of Altman's Z-Score: Suppose that the financial ratios of a potential borrowing firm took the following values: X1= Net working capital/Total assets = 25, X2= Retained earnings/Total assets = 1.1, X3 = Earnings before interest and taxes/Total assets = 25, X4= Market value of equity/Book value of long-term debt = 1.4, X5=Sales/Total assets ratio = 1.8. Calculate the Altman's Z-score for this firm
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