5. An analyst is completing her analysis of three companies in the same industry. Which of these companies is the most solvent, i.e. most capable of repaying debt? (in thousands) Company B Company A 10,087 Company c Total debt Total assets 28,087 EBIT 3,903 Interest payments 847 Debt-to-assets ratio 37% 34.2% Interest coverage ratio 5.34 5.55 A. Company A B. Company B C. Company C 6. Singh and Ho discuss the impact of dividends, share repurchases, and leverage on a firm's free cash flow. Ho tells Singh the following: Statement 1: Changes in leverage do not impact free cash flow to equity. Statement 2: Transactions between the company and its shareholders, such as the payment of dividends or share repurchases, do affect free cash flow to equity. Which of Ho's statements regarding free cash flow is (are) correct? A. Statement 1 only B. Statement 2 only C. Neither Statement 1 nor Statement 2