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Financial Data EBIT Interest Expense Firm 1 670 123 Firm 2 600 114 Firm 3 850 146 Firm 4 680 121 Total Debt Total Assets

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Financial Data EBIT Interest Expense Firm 1 670 123 Firm 2 600 114 Firm 3 850 146 Firm 4 680 121 Total Debt Total Assets 809 1357 710 1431 1051 1320 922 1324 Which of the following is true? A Firm 1 or 2 has the best (highest) coverage ratio B Firm 3 or 4 has the best (lowest) leverage ratio C All of the above D None of the above

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