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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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The following financial data pertains to ABC Corp:

ItemValue
Working capital$170,000
Total assets$670,000
Book value of liabilities$240,000
Market value of liabilities$205,000
Retained earnings$300,000
Market value of equity$380,000
Earnings before interest and taxes$60,000
Sales$2,200,000

The Altman's Z-score equation is as follows:

Z=1.2X1+1.4X2+3.3X3+0.6X4+0.999X5Z = 1.2X_1 + 1.4X_2 + 3.3X_3 + 0.6X_4 + 0.999X_5Z=1.2X1​+1.4X2​+3.3X3​+0.6X4​+0.999X5​

When using the computed Z-score to classify ABC based on credit quality, what is the classification?_

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