In the Merton model the distance-to-default q given by is q = 1/sigma ln (V/D) where sigma is the volatility of the firm's assets, V is the value of the firm's and D is the value of the debt of the firm. Analyzing the corporate debt statistics of Standard & Poor's, the following relationship between q and ratings has been found: (a) Is the value of the firm assets less than the value of the firm debt for any of the ratings shown above? Briefly explain. (b) Company ABC and XYZ have the same asset value, but company ABC has equity than company XYZ. Does it follow that company ABC is riskier (closer to than company XYZ? Briefly explain. In the Merton model the distance-to-default q given by is q = 1/sigma ln (V/D) where sigma is the volatility of the firm's assets, V is the value of the firm's and D is the value of the debt of the firm. Analyzing the corporate debt statistics of Standard & Poor's, the following relationship between q and ratings has been found: (a) Is the value of the firm assets less than the value of the firm debt for any of the ratings shown above? Briefly explain. (b) Company ABC and XYZ have the same asset value, but company ABC has equity than company XYZ. Does it follow that company ABC is riskier (closer to than company XYZ? Briefly explain