Altman's Z-Score Model Is Z = 1

Altman's Z-score model is Z = 1.2X₁ + 1.4X₂ + 3.3X₃ + 0.6X₄ + 1.0X₅
X₁ = Working Capital/Total Assets
X₂ = Retained Earnings/Total Assets
X₃ = EBIT/Total Assets
X₄ = Market Value Equity/Book Value Long-Term Debt
X₅ = Sales/Total Assets
Using the Altman's Z model, Big Valley's Z-score is

A) 3.22.
B) 2.88.
C) 2.65.
D) 2.11.
E) 1.85. WC/TA = 7.44%; RE/TA=23.14%; EBIT/TA=19.01%; MVE/BVLTD = 1.50; S/TA = 1.28; These numbers give a Z-score of 3.22, which indicates low default risk.