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Which of the following statements is true? To analyze the risk of a firm's capital structure, the analyst need only assess the three debt ratios.

Which of the following statements is true?

To analyze the risk of a firm's capital structure, the analyst need only assess the three debt ratios.

The fixed charge coverage ratio is a narrower measure of coverage capability because it considers only operating leases and not interest expense.

The cash interest coverage ratio measures how many times interest payments can be covered by cash flow from operations before interest and taxes.

Times interest earned calculates the amount of cash flow from operations available to make interest payments.

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