Question: Using a modified discriminant function similar to Altman's. Burger Bank estimates the following coefficients for its portfolio of loans: Z= l.4X_1 + 1.09X_2 + 1.5X_3

Using a modified discriminant function similar to Altman's. Burger Bank estimates the following coefficients for its portfolio of loans: Z= l.4X_1 + 1.09X_2 + 1.5X_3 where X_1 = debt to asset ratio; X_2 = net income and X_3 = dividend payout ratio. Using Z = 1.682 as the cut-off rate, what should be the debt to asset ratio of the firm in order for the bank to approve the loan

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