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 ﬁnd out that you have in fact made a major mistake in the valuation of your assets, which turns out to be 20% higher than you previously had thought.Leverage remains unaffected, however, with equal shares debt and equity.Should you be worried about your ﬁrm's survival chances? Why or why not?

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The Answer of 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 ﬁnd out that you have in fact made a major mistake in the valuation of your assets, which turns out to be 20% higher than you previously had thought.Leverage remains unaffected, however, with equal shares debt and equity.Should you be worried about your ﬁrm's survival chances? Why or why not?

In the Z Score Model for Private ﬁRms, the Z