In the Z score model for private firms, the Z score is calculated as Z = 0.717 (Net Working Capital/Total Assets) + 0.847 (Accumulated Retained Earnings/Total Assets) +3.10 (EBIT/Total Assets) + 0.420 (Book Value of Equity/Total Liabilities) +0.998 (Sales/Total Assets).You are part owner of a private firm.The firm currently has a Z score of 2.60.You and the other owners have taken measures that will double the firm's profitability to 20% in the next year.What will the firm's new Z score say about its survival chances?
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