问题如下：
A firm's assets are currently valued at $700 million, its current liabilities are $120 million, and long-term liabilities are $300 million. The standard deviation of expected asset value is $76 million. Assume the firm has no other debt and that the ratio of long-term-liabilities-to-short-term-liabilities is less than 1.5. What will be the appropriate distance to default measure when utilizing Moody’s KMV Credit Monitor Model?
选项： 9.21 standard deviations.
5.66 standard deviations.
C.3.68 standard deviations.
D.1.87 standard deviations.
解释：
B The KMV calculation is as follows:
Distance to default = (asset value - liability value) /standard deviation of asset value
Liability value = short-term (or current) liabilities + 0.5 x long-term liabilities
Distance to default = [$700m - ($120m + 0.5 x $300m)] /$76m
Distance to default = 5.66 standard deviations
因为L/S debt ratio 适用公式错误，结果应该是4.39吧
