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Three companies A, B, and C have the following financial ratios for the latest fiscal year. A: EBITDA coverage = 10, Profit margin = 10%,

Three companies A, B, and C have the following financial ratios for the latest fiscal year.

A: EBITDA coverage = 10, Profit margin = 10%, Return on assets = 20%;

B: EBITDA coverage = 12, Profit margin = 8%, Return on assets = 10%;

C: EBITDA coverage = 6, Profit margin = 12%, Return on assets = 15%.

Which company has the best capability to service its debt obligations?

A. A

B. B

C. C

D. Cannot tell from these ratios that are given

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