Question: Interest is Big Valley's only fixed cahs charge. Big Valley's market value of equity to book value of debt ratio=1.5 Altman's Z-score model is Z

Interest is Big Valley's only fixed cahs charge. Big Valley's market value of equity to book value of debt ratio=1.5 Altman's Z-score model is Z = 1.2x_1 + 1.4x_2 + 3.3x_3 - 0.6x_4 + 1.0x_5 x_1 = Working Capital/Total Assets X_2 = Retained Earnings/Total Assets X_3 = EBIT/Total Assets X_4 = Market Value Equity/Book Value Long-Term Dept X_5 = Sales/Total Assets Using the Alteman's Z model, Big Valley's Z-score is 3.22. 2.88 2.65

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