11-95 Suppose X3 = 0.2 instead of -0.30.According to Altman's credit scoring model,the firm would fall under which default risk classification?

Question

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Altman's credit scoring model assigns a score based on a combination of financial ratios, and higher scores indicate lower default risk. With the higher X3 value of 0.2, the firm's overall score would increase, indicating a lower default risk classification. Therefore, the firm would fall under the category of a low default risk firm (option C).