QUESTION 2 (15 MARKS) To assess the risk of failure using Z and Zeta score models, we need financial information about a company. Let's consider a hypothetical example for a company called Hygienix Inc. Here are the relevant financial details: 1. Total Assets: $12 million 2. Total Liabilities: $7 million 3. Total Shareholders' Equity: $5 million 4. Earnings Before Interest and Taxes (EBIT): $2.5 million 5. Net Income: $2 million 6. Market Value of Equity: $8 million 7. Sales: \$14 million Now, let's calculate the Z scores for Hygienix Inc. using the given information. Z-Score Calculation: The Z-score model helps assess the financial health of a company and predict the likelihood of bankruptcy. a. Calculate the Z-Score for Hygienix Inc The formula to calculate the Z-score is as follows: (ZScore=1.2A+1.4B+3.3C+0.6D+1.0E) b. Calculate the Zeta-Score for Hygienix Inc The formula to calculate the Z-score is as follows: i. ( Zeta Score =6.56A+3.26B+6.72C+1.05D+1.65E) ii. ( Zeta Score =6.56A+3.26B+6.72C+1.05D+1.25E+1.58F+1.12G+2.38H)