answer the following questions 245

In the worksheet called “DebtRate.xls” are 3-year financial statements of5 firms representing different industries. Using whatever method you feel appropriate,

1. Rank the 5 firms in the order of their credit-worthiness.
2. Assign debt rating (ranging from AAA to CCC-) for each company’smarginal debt for the most recent year (Year 3).
3. Concisely explain the method(s) or rationale you used to assign thedebt rating.