MSc Financial Management
Task 1: Applying debt rating prediction models to real-life data: Getronics
Read the case study Getronics . A spreadsheet containing the exhibits is available on Blackboard. Using the information from the case and the data in the spreadsheets, you are required to:
Apply the debt rating prediction model outlined in Table a on the next page, a version of the model described in Table 10.8, page 401 of the core text1 to determine a debt rating for each half year end during the years 2002 – 2007. State any assumptions made, and ensure your workings are clear in your spreadsheet answer.
Compare your debt ratings’ calculations against Getronics’ actual debt ratings outlining why limitations in the prediction model may explain any differences.
