Which ratios measure the extent of a firm's financing with debt relative to equity and its ability to cover interest and fixed charges?
a. Debt ratio and price-to-earnings ratio.
b. Cash flow adequacy and fixed charge coverage.
c. Days payable outstanding and gross profit margin.
d. Cash interest coverage and average collection period
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Home » Business » Which ratios measure the extent of a firm's financing with debt relative to equity and its ability to cover interest and fixed charges? a. Debt ratio and price-to-earnings ratio. b. Cash flow adequacy and fixed charge coverage. c.