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Explain the concepts of solvency and risk. How are they related to the firms leverage position? Tiger-Farms has a term debt and capital lease coverage

Explain the concepts of solvency and risk. How are they related to the firms leverage position?

Tiger-Farms has a term debt and capital lease coverage ratio of 4.23:1 and capital replacement and term debt replacement margin is $65,000. Interpret both values and contrast.

Distinguish between solvency and coverage ratios. How are they related? Which financial statements are involved? Explain your reasoning.

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