In discriminant analysis, what type of ratings would credit rating agencies give to a firm that has a Z-Score that lies well below the cut-off score? And if the Z-Score lies well above the cut-off? What signal does the credit rating of a corporate bond send to the market?

Answer rating: 100% (QA)

In discriminant analysis credit rating agencies evaluate the financial health and creditworthiness of a firm based on various financial ratios and ind... View the full answer