Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to ______creditorsanalystsshareholdersItem 1 . They include the: (1) Debt-to-assets ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's____________cashflow statementincome statementbalance sheetItem 2 , while the last two ratios analyze debt by looking at the firm's_______cashflow statementincome statementbalance sheetItem 3 . The debt-to-total-assets ratio measures the percentage of funds provided by________debtholdersanalystsshareholdersItem 4 . Its equation is:

High debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more________debtpreferredequityItem 5 . The times interest earned ratio measures the extent to which_________totaloperatingnetItem 6 income can decline before the firm is unable to meet its annual_______depreciationrentinterestItem 7 payments. Its equation is:

EBIT is used as the numerator because________depreciationrentinterestItem 8 is paid with pretax dollarsthe firm's ability to pay________depreciationrentinterestItem 9 is not affected by taxes. The EBITDA coverage ratio is:

This ratio is more complete than the TIE ratio because it recognizes that depreciation and amortization are not________deductiblecashrealItem 10 expenses, so these amounts are available to service debt, and lease payments and principal repayments are fixed payments.