Question: Using a modified discriminant function similar to Altman's, Sunshine Bank estimates the following coefficients for its portfolio of loans: Z = 1.4X1 + 1.09X2 +

Using a modified discriminant function similar to Altman's, Sunshine Bank estimates the following coefficients for its portfolio of loans: Z = 1.4X1 + 1.09X2 + 1.5X3,where X1 = debt to asset ratio; X2 = net income and X3 = dividend payout ratio. What is the Z-score if the debt to asset ratio is 40%, net income is 12%, and the dividend payout ratio is 60%?

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