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Debtors are interested in the times interest earned ratio because they want to a . have adequate protection against a potential drop in earnings jeopardizing

Debtors are interested in the times interest earned ratio because they want to

.

have adequate protection against a potential drop in earnings jeopardizing their interest payments

.

be sure their debt is backed by collateral

.

know what rate of interest the corporation is paying

.

know the tax effect of lending to a corporation

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