alleryStart learning →A firm has X1 0.2, X2 0.3, X3 0.1, X4 0.5 and X5 1.0 in the original model. Its zone is:
ASafe zone
BGrey zone
CDistress zone
DInsolvent zone
Answer & Solution
Correct answer: B. Grey zone
Z = 0.24 + 0.42 + 0.33 + 0.30 + 1.0 = 2.29, which lies between 1.81 and 2.99.
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