Complete this template by replacing the bracketed text with the relevant information.

Debt$-$to$-$Assets Ratios

Calculate the quality of the debt$-$to$-$assets ratios for both companies.

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Explain the quality of the debt$-$to$-$assets ratios for both companies.

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Determine which company is more highly leveraged.

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Times$-$Interest$-$Earned Ratios

Calculate the times$-$interest$-$earned ratios for both companies.

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Explain the times$-$interest$-$earned ratios for both companies. Address the following questions in your response:

Are the times$-$interest$-$earned ratios adequate?

Is the times$-$interest$-$earned ratio greater than or less than $2\mathrm{.}5?$ What does that mean for the companies' income?

Can the company afford the interest expense on a new loan?

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Foreign Debt

Explain why The Coca$-$Cola Company and PepsiCo, Inc. may use foreign debt to finance their operations.

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Explain the risks involved in using foreign debt to finance operations.

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References

Include any references used to complete this assignment. This section is for the full citation. Sources should be cited using APA style.

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