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What are the main differences between two types of leverage

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Reference no: EM132186212

Question: Find the financial leverage ratios for SBUX for the last 3-5 years in the Internet. Present these ratios as the table(s) in your project.

Debt-to-assets ratio (Debt ratio)

Debt-to Equity ratio

Interest Coverage ratio (the Times Interest Earned)

Write (about) 1 page of the analysis of the ratio results. In your analysis you should answer the following questions. Please explain your answer to each question.

How is THE COMPANY financing its assets? Discuss how much risk is associated with the bonds issued by the company? How can this risk be measured? Please explain.

What is financial leverage?

What is operational leverage?

What are the main differences between the two types of leverage?

What are the calculations for leverage, what values are included and what does it show us about the business?

Reference no: EM132186212

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