Question
The following table shows some financial data for two companies: A B Total assets $1,587.1 $1,600.7 EBITDA 53 77 Net income + interest 73 31
The following table shows some financial data for two companies:
|
| A | B |
| Total assets | $1,587.1 | $1,600.7 |
| EBITDA | 53 | 77 |
| Net income + interest | 73 | 31 |
| Total liabilities | 744.0 | 1,467.1 |
Calculate the probability of default for the two companies.
Which company has the higher probability?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
