Using a modified discriminant function similar to Altman's, XYZ Bank estimates the following coefficients for its portfolio of loans:

Z = -0.8*X1 + 2.02*X2 + 3.1*X3

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

Using Z = 1.7 as the cut-off rate, what is the maximum debt to asset ratio of the firm in order for the bank to approve the loan? The firm's net income is 12%, and the dividend payout ratio is 60%.

Select one:

a.14.5%

b.19.9%

c.47.1%

d.47.5%

e.None of the options