1. Select three industrial companies that have been experiencing difficult times. a. For each of them draw...

Question:

1. Select three industrial companies that have been experiencing difficult times.

a. For each of them draw a figure similar to Figure 23.8 . Are the companies’ troubles reflected in their financial ratios?

b. Calculate a default probability for each using the formula shown in Section 23-4 .

c. Now look at the company’s bond rating. Do the two measures provide consistent messages?

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Related Book For  book-img-for-question

Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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