Amber Ltd. increased its debt to total assets ratio from 40% to 60% over the past year

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Amber Ltd. increased its debt to total assets ratio from 40% to 60% over the past year and its times interest earned ratio rose from 3.0 times to 3.8 times. Meanwhile, Baxter Inc. also increased its debt to total assets ratio by the same amount but its times interest earned ratio fell. Explain how this is possible.
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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