Chartered Financial Analyst Level 2
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An analyst gathers the following information of three companies in the same industry:
| Company A | Company B | Company C |
|---|---|---|
| Dividend coverage ratio (x): | 3.13 | 2.50 |
| Debt ratio: | 37% | 22% |
If the earnings of all three companies are expected to decline by 20% due to a business downturn, which company has the highest risk of a dividend cut?