Company ABC, a social media firm, has the following characteristics: There are 200 million shares outstanding, trading at $100 per share. The firm has a book value of debt $50 billion (with a maturity of 10 years) and interest expenses of $1 billion on the debt. The firm is not rated, but it has operating income of 2.5 billion last year. The tax rate for the firm is 30%. The equity risk premium is 6% The estimated bond ratings and the corresponding default spreads for various ranges of interest coverage ratio are: Interest Coverage Ratio > 4.79 3.70 4.79 3.00-3.69 2.00 - 2.99