The overarching purpose of credit risk analysis is to: A) Quantify potential credit losses B) Determine a company's optimal capital structure C) Identify credit opportunities D) Provide information to banks about credit losses 17. Debt covenants represent A) The property that a lender pledges to guarantee repayment B) The minimum amount that a creditor will allow a debtor to owe at any point in time C) Promises the lender makes to the debtor. D) Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment 18. When considering the results of an Altman Z-Score analysis a score of 4.0 would suggest? A) The company is in financial distress and there is a high probability of bankruptcy in the short term future B) The company is exposed to some risk of bankruptcy C) The company is healthy and there is a low bankruptcy potential in the short-term D) The company is healthy and there is a low bankruptcy potential in both the short and long-term 19. Kasen Corporation reported the following earnings per share information in its 2018 annual report. The company has only one class of stock outstanding. (S in millions) Net income Dividends to common shareholders $10,925 $1,433 4,769 Weighted average common shares outstanding Weighted average dilutive shares from stock options Basic and diluted earnings per share were, respectively A) $0.30 and $0.30 B) $0.77 and $0.74 C) $1.08 and $1.06 D) $2.29 and $2.26 E) None of the above 20. All of the following are potentially dilutive in computing diluted EPS except: A) Employee stock options B) Convertible preferred stock C) Convertible bonds D) Warrants E) All of the above are dilutive securities