medium · Principles of Finance financial-statements-markets-wc
A firm has an Altman Z-score of 1.5. Based on standard interpretation, which of the following is most likely to occur?
- The firm is in the 'Safe Zone' and unlikely to default
- The firm is in the 'Distress Zone' and has a high probability of bankruptcy
- The firm has excessive liquidity and should pay dividends
- The score is inconclusive ('Grey Zone')
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