Please Answer 3 Sub Parts the question and no Reject.... Thank u 2. For private firm, Altman adjusts the public model by changing thenumerator for the variable X4 from the market value of equity to the bookvalue of equity. The revised model follows:Where:X1 = Net Working Capital/Total assetsX2 = Retained Earnings/Total AssetX3 = Earnings before interest and taxes/Total AssetsX4 = Book value of equity/Book value of Total LiabilitiesX5 = Sales/Total AssetsThe model predict bankruptcy when Z < 1.23. The range between 1.23and 2.90 is labeled the "grey area".Independent VariableXYZ, Inc.KLM, Inc.- 0.1150.895- 0.0751.250ABC, Inc.XIX2X30.0750.7670.0952.5000.900- 0.3210.605- 0.1081.125X4X51.2860.710The following table presents the independent variables from the threecompanies at the end of 2011.a) Calculate Altman Z-score for each company and interpret the results.b) Calculate the debt ratio for each of the companies.c) Explain the impact of increase debt ratio to Altman Z-score.

Name: Please Answer 3 Sub Parts the question and no Reject.... Thank u 2. Fo
Uploaded: 2024-03-20T07:07:37.000Z
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Description: Please Answer 3 Sub Parts the question and no Reject.... Thank u 2. For private firm, Altman adjusts the public model by changing thenumerator for the variable X4 from the market value of equity to the bookvalue of equity. The revised model follows:W