Give an example of how a cash flow ratio might differ from a proportion of debt ratio.

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Give an example of how a cash flow ratio might differ from a proportion of debt ratio.
Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial risk, while the proportion of debt ratio indicates low risk), which ratios would you follow? Justify your choice.

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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