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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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