Q(1-5 ) Using the original Z-score model for publicly traded companies to estimate the financial position,

Z = 1.5X1 + 0.25X2 + 1.5X3

Where: X1 = debt to asset ratio; X2 = net income and X3 = dividend payout ratio.

Calculate the debt to asset ratio if Z= 4

X1 = debt to asset ratio (?)

X2 = net income = 1

X3 = dividend payout ratio = 0.50

Select one:

a. 2

b. 2.25

c. 1.25

d. 0.75