54 Which of the following has the highest relative likelihood of being defaulted in paying theoutstanding loan? *A banker is reviewing the bank's current portfolio of outstanding loans based on thefollowing information on four companies that the bank has loaned money to:CompanyABP5,000,000 P12,500,000CompanyCDCompanyEFP4,300,000CompanyGHP2,450,000Earnings before interest andincome taxesInterest expenseP3,950,000 P9,000,000P2,675,000P1,250,000O Company EF.O Company GH.O Company AB.O Company CD.

The interest expense and earnings before interest and income taxes details for each of the company…

Answered: Which of the following has the highest…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1bM

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Which of the following has the highest relative likelihood of being defaulted in paying the outstanding loan? *