1. Explain how you would rank the 5 C’s of credit analysis in order of importance and explain your rankings?
2. What are the most important covenants for creditors to include in loan agreements with borrowers and why?
3. There is a fundamental flaw in the credit rating agency process – the issuer of securities pays for the rating? How can this fundamental flaw be repaired going forward and why is that the best solution compared to other alternatives?
4. If you were the CEO of a financially-troubled company, what changes would you make in the operating and financial strategies to avoid bankruptcy and improve future performance?
5.Why and how do we determine a company’s cost of capital and why is it important to a company?
Please list sources/references