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Question 2: Default Probability The following table shows some financial data for two companies: A B Total assets $1,552.1 $1,565.7 EBITDA -60 70 Net income
Question 2: Default Probability The following table shows some financial data for two companies:
| A | B | |
| Total assets | $1,552.1 | $1,565.7 |
| EBITDA | -60 | 70 |
| Net income + interest | -80 | 24 |
| Total liabilities | 814.0 | 1537.1 |
a. Calculate the probability of default for the two companies. b. Which company has the higher probability?
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