In what sense is the times interest earned ratio more a measure for assessing short - term
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Question:
In what sense is the times interest earned ratio more a measure for assessing shortterm liquidity risk than it is a measure for assessing longterm solvency risk? How does the information given by this ratio differ from the information given by the debt ratio? Define financial leverage also called gearing Explain why financial leverage works to the benefit of the common shareholders whenever ROE exceeds ROA.
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