Presented below is the financial information of two companies—A and B, belonging to the same industry: Assume you are loan officer of a bank and both the companies have requested a loan of equal...

Presented below is the financial information of two companies—A and B, belonging to the same industry:

Assume you are loan officer of a bank and both the companies have requested a loan of equal amount to be repaid over the next two years. Based on the information above,

(a) If you could grant a loan to only one company, which would it be? Explain.

(b) If you could grant a loan to both the companies, would you be willing to do so? Explain.