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Below you can find is the output of a logit model/estimation in which the dependent variable is a default indicator variable ( 1 if default,

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Below you can find is the output of a logit model/estimation in which the dependent variable is a default indicator variable ( 1 if default, 0 if not) and the explanatory variables are standard accounting ratios or factors: RE/TA, EBIT/TA, and MV/TL, plus a Foreign Firm indicator variable ( 1 if the company headquarters are in a foreign country, 0 if not). Based on this output: a. Build a scoring function for corporate borrowers. b. Estimate the probability of default of a borrower headquartered in a foreign country with the following values of the three accounting factors included in the model: RE/TA=0.2,EBIT/TA=0.1, and MV/TL=0.4. Below you can find is the output of a logit model/estimation in which the dependent variable is a default indicator variable ( 1 if default, 0 if not) and the explanatory variables are standard accounting ratios or factors: RE/TA, EBIT/TA, and MV/TL, plus a Foreign Firm indicator variable ( 1 if the company headquarters are in a foreign country, 0 if not). Based on this output: a. Build a scoring function for corporate borrowers. b. Estimate the probability of default of a borrower headquartered in a foreign country with the following values of the three accounting factors included in the model: RE/TA=0.2,EBIT/TA=0.1, and MV/TL=0.4

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