An analyst wants to compare the creditworthiness of two companies and gathers the following information: In $ '000 Alpha Beta Cash 1,610 2,248 Interest Expense 750 1,015 EBITDA 1,300 1,820 Secured debt (bank loan and bonds) 4,285 2,390 Senior unsecured bonds 2,030 2,945 Subordinated bonds 570 4,305 Total debt 6,885 9,640 An example of a useful measure of financial leverage includes some form of debt divided by EBITDA. 1. Calculate the total financial leverage through each level of debt for both companies. 2. Calculate the net leverage (.e. net of cash) through the total debt structure for both companies. 3. Comment on the creditworthiness of both companies from the point of view of an unsecured debt investor