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Find X1 X4 ALTMAN'S LINEAR DISCRIMINANI MODEL Z=1.21+1.42+3.33+0.64+1.05 Critical value of Z=1.81. - X1= Working capital/total assets. - X2 = Retained earnings/total assets. - X3=EBIT/

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ALTMAN'S LINEAR DISCRIMINANI MODEL Z=1.21+1.42+3.33+0.64+1.05 Critical value of Z=1.81. - X1= Working capital/total assets. - X2 = Retained earnings/total assets. - X3=EBIT/ total assets. - X4 = Market value equity/ book value LT debt. - X5= sales/total assets. z>2.99 - "Safe" Zones 1.812.99 - "Safe" Zones 1.81

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