Below are various states of financial distress: 1 . defaulting on a principal payment on debt 2 . restructuring debt 3 . liquidating a firm 4 . filing for bankruptcy 5 . failing to make a required interest payment on time What is the order of increasing gravity that analysts typically consider when assessing credit risk and bankruptcy risk according to a continuum of financial distress?
a. 5, 1, 2, 3, 4
b. 5, 2, 1, 4, 3
c. 1, 5, 2, 4, 3
d. 1, 5, 2, 3, 4
B
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When testing for the differences between two percentages, a computed z value that is larger than the critical z value (i.e. +or -1.96 ) amounts to no support for:
A) a significant difference B) the null hypothesis C) the alternative hypothesis D) null alternative E) none of the above
Which of the following is NOT recorded as the cost of a building?
A) building permits B) fencing C) architectural fees D) contractor charges
A machine with a cost of $100,000 has an estimated residual value of $10,000 and an estimated life of 10 years or 30,000 hours. What is the amount of depreciation for the first full year, using the double-declining-balance method?
a. $10,000 b. $9,000 c. $20,000 d. $18,000
Because variable costs are assumed to change in direct proportion to changes in the activity level, the graph of the variable costs when plotted against the activity level appears as a circle
Indicate whether the statement is true or false