Y8

Graphic Organizer Discussion Question - CLO 1, 7

By using a graphic organizer of your choice, create a visual graphic that visually explains your response to the following:

A friend has mentioned that she has read that the following variables can be used to predict bankruptcy: (a) the company debt ratio; (b) the interest coverage; (c) the amount of cash relative to sales or assets; (d) the return on assets; (e) the market-to-book ratio; (f) the recent return on the stock; and (g) the volatility of the stock returns.

The problem is, she can't remember whether a high value of each variable implies a high or a low probability of bankruptcy. Help your friend remember the information she needs to know by creating a visual graphic.

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