Question: Lender's Perspective Checked Test 8 Financial Data EBIT Interest Expense Firm 1 730 77 Firm 2 650 67 Firm 3 620 Firm 4 850 91

Lender's Perspective Checked Test 8 Financial Data EBIT Interest Expense Firm 1 730 77 Firm 2 650 67 Firm 3 620 Firm 4 850 91 68 Total Debt Total Assets 814 1859 720 1314 1040 4772 920 2805 Which of the following is true? A Fimm 1 or 2 has the best (highest) coverage ratio B Firm 3 or 4 has the best (lowest) leverage ratio C All of the above D None of the above

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