1. Answered

2. Answered

3. Answered

4.Answered

5. Answered

6. Answered

7. Depreciation, rent, interest.

8. Depreciation, rent, interest

9. Depreciation, Rent, Interest

10. Deductible, cash, real

Attempts: Score: 10 4. 4: Analysis of Financial Statements: Debt Management Ratios .They include the: (1) Debt-to-capital while the last two ratios Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to creditors ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's balance sheet analyze debt by looking at the firm's income statement . The debt-to-capital ratio measures the percentage of funds provided by debtholders . Its equation is: Total debt Total capital Total debt Total debt + Equity The times interest earned ratio High debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more equity payments. Its equation is: measures the extent to which operatingincome can decline before the firm is unable to meet its annual -Select BIT Times-interest-earned (TIE) ratio= interest charges is not affected by taxes. The EBITDA coverage ratio is: EBIT is used as the numerator because-Select- is paid with pretax dollars-the firm's ability to pay -Select- EBITDALease payments EBITDA coverage rati0Tnterest Principal payments +Lease payments This ratio is more complete than the TIE ratio because it recognizes that depreciation and amortization are not-Select expenses, so these amounts are available to service debt, and lease payments and principal repayments are fixed payments. Save & Continue Continue without saving