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

Z = -0.8X1 + 2.02 X2 + 3.1X3

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

Using Z = 1.7 as the cut-off rate, what should be 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.None of the options

b.19.9%

c.47.5%

d.47.1%

e.14.5%