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Canadian Pacific Railway (CP) and Canadian National Railway (CN) are two major publicly traded transcontinental freight railway systems in Canada. CN is Canada's largest

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Canadian Pacific Railway (CP) and Canadian National Railway (CN) are two major publicly traded transcontinental freight railway systems in Canada. CN is Canada's largest railway, in terms of both asset value and physical size (approximately 49,000 km of track). CP is about half the size of CN (approximately 20,000 km of track). Given the type of industry (railway), both companies have significant capital assets. Railroad tracks and rolling stock (trains and any other vehicles used on the tracks) make up 89% and 90% of total properties, respectively, for each company. To finance these assets, both companies are highly leveraged. 69% of CP's total assets are financed by debt and 56 % of CN's assets are financed by debt. You are a newly hired data analyst for a local financial advisor and have been asked to do the following (using Excel): Prepare a brief summary outlining why adequate and affordable financing for capital asset-intensive companies like CP and CN is important and how investors assess whether the debt levels carried by these companies are sufficient.

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