QUESTION 5) (20 pts) Freshman

Company and Graduates Company are

operating in the same sector. Freshman

was established in 2016 and Graduates

in 2010. Both company's cost of debt is

5% as of December 31, 2018.

a) Comment on the asset efficiency and

profitability of both companies and

indicate which is better.

(10 pts,) (Note: Do not tell

me only this increased that decreased,

I want a nice paragraph) b) Comment on the success of debt management

and riskiness of both companies.(10

pts, 150

words)