QUESTION 6 Smith & Smith has a bond rating of B and an Altman s Z-score of 1.0. This suggests that: a. The firm is expected to declare bankruptcy within 30 days b. The firm has high credit risk c. The firm has low credit risk Od. The firm is healthy QUESTION 7 Which of the following is a failure event according to Flagg et al. (1991)? a. Firm has high activity ratios b. Firm has a troubled debt restructuring c. Firm gets a prime interest rate d. Firm has leverage ratios below the Industry average rates QUESTION 8 Capital structure measures: a. The composition of long-term debt and equity b. The credit risk of a company c. The probability of bankruptcy d. The probability of default