Based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:

Question:

A. Company A.

B. Company B.

C. Company C.

The following information relates EXHIBIT 4 Industrial Comparative Ratio Analysis, Year 20XX EBITDA/ Interest Expense Company A Company B

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Fixed Income Analysis

ISBN: 9781119627289

4th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:46 AM

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Based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:

Question:

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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Fixed Income Analysis

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