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Ratio Analysis

Ratios that help assess a company’s ability to service the interest and repayment obligations on its long-term debt and the degree to which it uses borrowed versus invested financial capital are called____________ ratios.

Financial-Management   Cengage   Mindtap   
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Answer #1

debt or financial leverage management

answered by: Hauser
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Answer #2

Debt or financial leverage ratios help you examine the firm’s ability to service its debt (that is, both pay the interest and repay the principal on its long-term debt obligations), as well as the extent to which it relies on debt and equity financing. Examples of these ratios include the debt ratio, the debt-to-equity ratio, and the times-interest-earned ratio.


source: Cengage
answered by: Hauser
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