Q4-10. Q4-11. Q4-12. Q4-13. What two factors determine a company's level of credit risk? Explain what each factor tries to measure. Why do lenders require collateral? What are some common types of collateral? Why do lenders impose debt covenants on borrowers? Explain the three types of debt covenants. What is a credit rating? Why do companies care about their credit ratings? Q4-14. Explain in general terms, the Altman bankruptcy prediction model. What do each of the five model variables measure?