1. Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $125.645 million Total Common Stock of $3.810 million Cash of $6.030 million Retained Earnings of $27.775 million. What were the Digby Corporation's total liabilities?
2. Describe and explain the various fundamental (as opposed to market based) approaches to modelling PD for Credit Risk purposes, highlighting the limitations of certain approaches for portfolios with low default experience.