Problem 2. An investor is deciding between investing in the bonds issued by two companies operating in the same industry using the information listed below: Company A Company B Revenue $ 20m $ 50m Interest Expense $ 2m $ 5m EBIT $ 4m $ 7m Assets $ 10m $ 25m Based on the companies' financials listed above, which firm is less or more likely to default and why? Select all that apply. Company A is more likely to default because its revenue is less than the revenue of company B. Company A is more likely to default because its interest coverage ratio is 2.0, while company B's ratio is 1.4. Company A is less likely to default because it its EBIT to Assets ratio is 40%, while company B's ratio is 28%. Company B is more likely to default because it has higher interest expenses. Company A is more likely to default because it its EBIT to Assets ratio is 40%, while company B's ratio is 28%. Company A is less likely to default because its interest coverage ratio is 2.0, while company B's ratio is 1.4