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Which ratios measure the extent of a firms financing with debt relative to equity and its ability to cover interest and fixed charges? a. Debt

Which ratios measure the extent of a firms financing with debt relative to equity and its ability to cover interest and fixed charges?

a.

Debt ratio and price-to-earnings ratio.

b.

Cash flow adequacy and fixed charge coverage.

c.

Days payable outstanding and gross profit margin.

d.

Cash interest coverage and average collection period.

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