Use the Financial Highlights section of Market Insight to obtain Standard & Poor’s bond rating of at least 10 fi rms in the database. Try to choose a sample with a wide range of bond ratings. Next use Market Insight’s Annual Ratio Report to obtain, for each fi rm, the fi nancial ratios tabulated in Table 10.3 . What is the relationship between bond rating and these ratios? Can you tell from your sample which of these ratios are the more important determinants of bond rating?

LO.1