You are assessing the financial risk of two telecommunications companies, TelNet and ConnectCom, in the telecommunications sector.

Requirements:

1. TelNet reported earnings before interest and taxes (EBIT) of $100 million and interest expenses of $20 million for the fiscal year 2023. ConnectCom recorded EBIT of $120 million and interest expenses of $25 million during the same period.
2. Calculate the interest coverage ratio for both companies.
3. Discuss which company appears to have a stronger ability to cover its interest obligations.