With the Altman model,the higher the Z score,the more likely the firm will go bankrupt.

Name: With the Altman model,the higher the Z score,the more likely the firm will go bankrupt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The higher the Z score according to the Altman model, the less likely the firm will go bankrupt. The model calculates a score based on several financial ratios and if the score is higher than a certain threshold, it suggests that the company is financially healthy and less likely to go bankrupt.

With the Altman Model,the Higher the Z Score,the More Likely