QUESTION 1 1. Which of the following can be included in computing for the commercial scorecard? Consumer data of Directors/Proprietors/Sole Traders Audited financial statements CIC data All of the above QUESTION 2 1. Meralco has a debt coverage ratio of 0.9x, Inventory Turnover Ratio of 42.3x, ROA is 4.7% (versus utilities industry average of 4.4%), current ratio of 0.9x, and Altman Z- Score of 4.5. The company has a strong financial condition and can be offered a loan. True False QUESTION 3 1. Which modeling algorithm uses a binary representation to classify customers with their actual repayment classification (1 = "Good" or 0 = "Bad")? logistic regression GARCH ARIMA linear regression QUESTION 4 1. What cash flow classification is applicable in this scenario: receiving cash from issuing debt or paying down debt? Note that the company being analysed for creditworthiness is not in financial services. Cash Flow from Financing Activities Cash Flow from Investing Activities Cash Flow from Operating Activities Free Cash Flow to the Firm QUESTION 5 1. Ayala Corp. is applying for a commercial loan at your bank. Last year, Ayala Corp. has a working capital of PHP 229.8 billion, retained earnings of PHP 145.6 billion, EBIT of PHP 44.917 billion, and revenue of PHP 219.9 billion. Main balance sheet items (for the same period) were as follows: total assets - PHP 1,405.8 billion; total liabilities - PHP 863.3 billion; market capitalization - PHP 518.9 billion_What is its Altman Z-score? 1.0026 0.9637 1.0175 1.2398 QUESTION 6 1. Net Debt Issued to the Firm is not part of Free Cash Flow to Equity. Therefore, it should not be deducted from Free Cash Flow to the Firm (FCFF). It will understate FCFF. True False QUESTION 7 1. Based solely on Ayala Corp.'s Altman Z-Score, the bank can lend to the company. True False QUESTION 8 1. This scorecard is used when there is no sufficient data available to begin with. Expert Scorecard Judgmental Scorecard Hybrid Scorecard Statistical Scorecard QUESTION 9 1. It is not possible for the Altman Z-Score to be a negative value. True False QUESTION 10 1. This scorecard is used when there is no sufficient data yet but just enough to validate cases of nonpayment and payment. Expert Scorecard Judgmental Scorecard Hybrid Scorecard Statistical Scorecard QUESTION 11 1. URC's latest Inventory Turnover data shows a ratio of 3.6x. The company has stable sales and can be offered a loan based solely on this information. True False QUESTION 12 1. Which of the following modeling algorithms is commonly used in data science for credit scoring? logistic regression GARCH ARIMA linear regression QUESTION 13 1. What cash flow classification is applicable in this scenario: cash receipts from the sale of goods and services? Cash Flow from Financing Activities Cash Flow from Investing Activities Cash Flow from Operating Activities Free Cash Flow to the Firm