The following table shows some financial data for two companies: A B Total assets $1,552.1 $1,565.7 EBITDA

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The following table shows some financial data for two companies:

A B Total assets $1,552.1 $1,565.7 EBITDA 60 70 Net income  interest 80 24 Total liabilities 814.0 1,537.1 Use the formula shown in Section 23-4 to calculate which has the higher probability of default.

AppendixLO1

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