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A friend has mentioned that she has read somewhere that the following variables can be used to predict bankruptcy: a. debt ratio b. the market
A friend has mentioned that she has read somewhere that the following variables can be used to predict bankruptcy:
a. debt ratio
b. the market to book ratio of assets.
c. the volatility of the stock return.
The problem is that se can't remember whether a high value of each variable implies a high or low probability bankruptcy? Can you help her out for each situation?
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