To evaluate leverage in the recent low-interest-rate environment,many analysts are now evaluating debt multiples such as debt to EBITDA or debt to EBITA.

Question

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Over the past decade, interest rates have dropped to unprecedented lows, making interest coverage ratios uncharacteristically high. Given its much larger denominator, the debt-to-EBITDA multiple tends to be more stable, making assessments over time much clearer.

To Evaluate Leverage in the Recent Low-Interest-Rate Environment,many Analysts Are