Below are various states of financial distress:
defaulting on a principal payment on debtrestructuring debtliquidating a firmfiling for bankruptcyfailing 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.
1, 5, 2, 4, 3
b.
5, 2, 1, 4, 3
c.
1, 5, 2, 3, 4
d.
5, 1, 2, 3, 4