Sunday, June 9, 2019
1-calculate the Z-Score & Comment on the results,2- Find a debt rating Assignment
1-calculate the Z-Score & Comment on the results,2- Find a debt rating & Comment on the rating - Assignment typefaceIt can also be used to evaluate the managers of a company, if the Z-score is favourable then the managers are doing a good job and the converse is also true. Additionally, the moulding can be used to check the viability of the firm before seeking employment and also to predict business failure of the companyDebt rating refers to the go on monitoring of the firms financial status after they have been issued with a debt (Javier, 2014). The ratings are expressed as letters ranging from AAA which represents the highest investment gradation to C which represents the slumpest investment grade. This rating has an impact on the returns that must be offered in order to sell the debt instrument. For a firm to be considered able for investment, it must achieve a greater credit rating which is a crucial threshold because many funds are prevented by their ratings from any inve stments in bonds.Using the Standard and Poors debt rating agency, the above ratios indicate that the firm has a credit rating grade of B and below which is the low credit rating also referred to as the non-investment grade and is an indicator that the company is facing significant financial risks. Therefore, the power corporation should take necessary go to prevent the company from being declared
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