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

* Explain how do analysts use ratios to analyze 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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