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"Corporate Credit Analysis" means: a. An investigative framework to determine a firm's equity valuation b. None...

"Corporate Credit Analysis" means:

a. An investigative framework to determine a firm's equity valuation

b. None of these

c. An investigative framework to determine the probability of fraud

d. An investigative framework to determine a firm's capacity and willingness to pay obligations

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Answer #1

Select - (d)

An investigative framework to determine a firm's capacity and willingness to pay obligations.

Corporate credit analysis or simply credit analysis is an approach to check the firms ability to pay for the obligations through a study of existing capital structure and its impact on earnings and risk issues. Thus purpose is to rate the ability and willingness to pay i.e liquidity issues of the company.

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