Question: Complete this template by replacing the bracketed text with the relevant information. Debt-to-Assets Ratios 1. Calculate the quality of the debt-to-assets ratios for both companies.
Complete this template by replacing the bracketed text with the relevant information. Debt-to-Assets Ratios 1. Calculate the quality of the debt-to-assets ratios for both companies. [Insert text.] 2. Explain the quality of the debt-to-assets ratios for both companies. [Insert text.] 3. Determine which company is more highly leveraged. [Insert text.] Times-Interest-Earned Ratios 1. Calculate the times-interest-earned ratios for both companies. [Insert text.] 2. Explain the times-interest-earned ratios for both companies. Address the following questions in your response: A. Are the times-interest-earned ratios adequate? B. Is the times-interest-earned ratio greater than or less than 2.5? What does that mean for the companies' income? Can the company afford the interest expense on a new loan? C. [Insert text.] Foreign Debt 1. Explain why The Coca-Cola Company and PepsiCo, Inc. may use foreign debt to finance their operations. [Insert text.] 2. Explain the risks involved in using foreign debt to finance operation
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