Question: Explain how do analysts use ratios to analyse a firms leverage? Which ratios convey more important information to a credit analyst those revolving around the

Explain how do analysts use ratios to analyse a firms leverage? Which ratios convey more important information to a credit analyst those revolving around the levels of indebtedness or those measuring the ability to service debt? What is the relationship between a firms level of indebtedness and risk? What must happen in order for an increase in leverage to be successful?

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