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What is the Z score for ABC Company according to Altmans linear discriminant model based on the key financial ratios from last years financial statements.

What is the Z score for ABC Company according to Altmans linear discriminant model based on the key financial ratios from last years financial statements. (2 marks)

  1. Working Capital/Total Assets = X1 = 0.3
  2. Retained Earnings/Total Assets = X2 = 2.6
  3. Earnings Before Interest and Taxes/Total Assets = X3 = -0.6
  4. Market Value of Equity/BV of Total Liabilities = X4 = 0.9
  5. Sales/Total Assets = X5 = 2.8

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