In the role of a credit manager at a large bank, you are tasked with evaluating the probability of default for your largest counterparties. Utilizing a simplified Merton model, which is designed to assess the vulnerability of firms to changes in their market valuation and financial health, determine how Companies P, Q, and R should be ranked. These firms, which do not pay dividends and operate within the same industry, have the given market value of assets, face value of debt, and annual volatility of asset values. Use the distance to default calculation to rank these companies based on their probability of default over a 1-year period.