Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to . they include the: (1) debt-to-capital ratio, (2) times interest earned ratio (tie), and (3) ebitda coverage ratio. the first ratio analyzes debt by looking at the firm's , while the last two ratios analyze debt by looking at the firm's . the debt-to-capital ratio measures the percentage of funds provided by . its equation is: high debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more . the times interest earned ratio measures the extent to which income can decline before the firm is unable to meet its annual payments. its equation is: ebit is used as the numerator because is paid with pretax dollars—the firm's ability to pay is not affected by taxes. the ebitda coverage ratio is: this ratio is more complete than the tie ratio because it recognizes that depreciation and amortization are not expenses, so these amounts are available to service debt, and lease payments and principal repayments are fixed payments.

Ido not understand this project overview agricultural commodities are bought and sold through the stock exchange. the price of commodities changes all the time. investors buy many agricultural commodities before they are ready for shipping. when an investor buys an agricultural commodity that is going to be ready in the future, they call this purchasing futures. this might be a future crop, meat that has not yet been processed, or another type of agricultural commodity. for this project, you will have to decide how to spend $10,000. research the new york stock exchange. find one or more agricultural commodities that you are interested in. remember, it may be listed as a future crop. instructions identify the agricultural commodities that you think have the best chance of going up in price. think about what is going on with supply and demand. decide how you will spend your money. you may purchase only agricultural commodities. check the market every day for a week. record the price of your commodity or commodities each day. you may buy or sell your commodities at any time during the week. you may sell your commodities and buy different ones. feel free to experiment with the $10,000 by buying and selling commodities, but make sure to keep a careful record of your activities. at the end of the week, you will write a report on your investments. this report should be structured to include this information: page 1: explain how the stock market works. page 2: list all commodities purchased. describe each in detail. discuss why you selected these commodities. remember, they must be agricultural. page 3: create a chart or graph to illustrate the price of your commodity or commodities over the week’s time. list all of your activity buying and selling. make sure you include prices and details. page 4: write a summary of your experience. describe what you might do differently if you were using actual money. propose potential reasons why the price of each commodity may go up or down.