Balance sheet information for five companies is given below. For Company XYZ:
Current Assets = $70, Long Term Assets = $30, Current Liabilities = $50, Long Term
Liabilities = $40, Total Equity = $10. For Company ZZZ: Current Assets = $30, Long
Term Assets = $70, Current Liabilities = $10, Long Term Liabilities = $50, Total Equity
= $40. For Company QQQ: Current Assets = $50, Long Term Assets = $50, Current
Liabilities = $45, Long Term Liabilities = $30, Total Equity = $25. For Company YYY:
Current Assets = $90, Long Term Assets = $10, Current Liabilities = $10, Long Term
Liabilities = $10, Total Equity = $80. For Company NNN: Current Assets = $40, Long
Term Assets = $60, Current Liabilities = $30, Long Term Liabilities = $30, Total Equity
= $40[GN2]. Which firm has the most long term risk due to leverage?