Section outline

  • This section looks at the firm's capital structure. We study the varios ratios that summarize the debt-equity mix. We also learn how important it is to distinguish between market values and book values. Finally, we get to know ratios such as the interest coverage ratio that tell us whether the firm can service its debt obligations from operating business.

    • This section's reading assignment and review questions are listed below.

    • Reading: Leverage Ratios Book
    • Quiz: Leverage Ratios
      Students must
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      Receive a grade