________ measures such as debt-to-capital along with coverage ratios focus on a firm's ability to meet its long-term debt obligations,as well as its optimal use of debt.

Question

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Leverage measures focus on a firm's ability to meet its long-term debt obligations and its use of debt. Debt-to-capital ratio is a leverage ratio that measures the proportion of debt financing in a firm's capital structure. Coverage ratios measure a company's ability to meet its interest and principal payments on debt. Therefore, the best choice is leverage.

________ Measures Such as Debt-To-Capital Along with Coverage Ratios Focus