Suppose that the financial ratios of a potential borrowing firm took the following values:

X$1=0\mathrm{.}30$

X$2=0$

X$3=-0\mathrm{.}30$

X$4=0\mathrm{.}15$

X$5=2\mathrm{.}1$

Altman's discriminant function takes the form:

Z $=1\mathrm{.}2$ X$1+1\mathrm{.}4$ X$2+3\mathrm{.}3$ X$3+0\mathrm{.}6$ X$4+1\mathrm{.}0$ X$5$

Suppose X$3=0\mathrm{.}2$ instead of $-0\mathrm{.}30.$ According to Altman's credit scoring model, the firm would fall under which default risk classification?

A$.$ Either B or D$.$

B$.$ A low default risk firm.

C$.$ A medium default risk firm.

D$.$ A high default risk firm.

E$.$ An indeterminant default risk firm.