14. About bond rating (High rating: AAA, Low rating: D) a. Investment grade is for BB and up b. Measures market risk c. Larger debt tends to lower the rating d. Lower rating carries lower coupon None above e. $ Rp 15. The above balance sheet resembles the balance sheet of a. Indonesian exporter b. Indonesian importer c. American exporter and importer d. Indonesian exporter and importer None above e. 16. The above balance sheet will prefer a. Rupiah appreciates against dollar b. Rupiah depreciates against dollar c. Rupiah stays the same (no changes) d. Large fluctuation in exchange rate None above e. 17. Suppose we develop a model predicting non-bankruptcy as follow Y=0.2 +0.5 (Net working capital/Total assets) - 0.2 (Total debt/Total assets) Y=probability of non-bankrupt A company has working capital of $10 million, total debt of $70 million, and total assets of $100 million. What is the probability of bankruptcy using logit regression? a. 0.11 b. 0.89 c. 0.48 d. 0.86 e. 0.13