Based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:
Question:
Based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:
A. Company A.
B. Company B.
C. Company C.
The following information relates
Transcribed Image Text:
EXHIBIT 4 Industrial Comparative Ratio Analysis, Year 20XX EBITDA/ Interest Expense Company A Company B Company C EBITDA Margin (%) 25.1 29.6 21.8 Return on EBIT/Interest Capital Expense (%) 25.0 36.3 16.6 15.9 58.2 8.9 19.6 62.4 12.4 Debt/ EBITDA 1.6 0.5 2.5 Debt/Capital (%) 35.2 15.9 46.3
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