Write a research paper about measuring and predicting financial stress for business enterprises. The accounting literature includes several financial stress prediction models for business enterprises. The most common models are Altman Z-Score and Ohlson O-Score. These models are basically focusing on financial ratios, earnings measures, market values, and cash flow. The financial stress prediction models can be used as early warning tools to direct company's management to take the necessary corrective action before the company goes into financial difficulties and bankruptcy phases.
Your paper should present comprehensive discussion and analysis of at least three financial stress prediction models. The paper should present an application of one of these models on two companies listed in the stock market. You should present valid conclusion and clear opinion on each company's financial stress status.
Paper should fulfill all of the following requirements:
● describe at least three financial stress prediction models.
● describe the variables used for each prediction model
● explain why one model is more valid and preferable than the others
● select two companies listed in the stock market. These companies should have reported net losses in their most recent income statements.
● Present financial profile and summary of basic business operations of the selected companies
● Present application of one of the financial stress prediction models on the selected companies
● present an opinion and conclusion about each company's financial stress status.