A friend has mentioned that she has read somewhere 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;

(g) The volatility of the stock returns.

The problem is that she can’t remember whether a high value of each variable implies a high or a low probability of bankruptcy. Can you help her out?