Refer to the following financial data of Fox Industries Ltd.:

Required:
a. Compute the (1) earnings coverage ratio for Year 7, and (2) average earnings coverage ratio for the five-year period Year 3 through Year 7 (inclusive), separately on the first mortgage bonds and on the sinking fund debentures at the end of Year 7.
b. Compute the long-term debt to equity ratio as of December 31, Year 7, and identify the proportion of equity rep resented by shares senior to common shares.
c. Assuming a 50% income tax rate, calculate the (1) earnings coverage ratio for Year 7, and (2) average earnings coverage ratio for the five-year period Year 3 through Year 7 (inclusive), on the $1.10 cumulative redeemable preferred shares at the end of Year 7.
d. Assuming a 50% income tax rate and full conversion of the Class A shares, calculate earnings per common share for the end of Year7.

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FOX INDUSTRIES LIMITED Condensed Income Statement (S thousands) FISCAL YEAR ENDED Year 7Year 6 Year 5 Year 4 Year 3 Earnings before depreciation, interest on long-term debt, and taxes..· Less: Depreciation Earnings before interest on long-term debt $8,750 $8,250 $8,000 $7,750 $7,250 (4,000) (3.750) (3,500) 3.500) (3.250) and taxes $4,750 $4,500 $4,500 $4,250 $4,000 FOX INDUSTRIES LIMITED Capitalization at December 31, Year 7 (S thousands) Long-term debt First mortgage bonds 5.00% serial bonds due Year 8 to Year 10 6.00% sinking fund bonds due Year 15 (note 1),-. Debentures 17,500 6.50% sinking fund debentures due Year 16 (note 1). . . . 10,000 $35,000 Total long-term debt Capital stock $1.10 cumulative redeemable preferred, stated value $5.00 per share (redeemable at $20.00 share) 1,500 14,000 6,000 21,500 7,000 .18,500 $82,000 400,000 Class A shares, no par value (note 2). 1,000,000 common shares, no par value Total capital stock. Paid-in capital Retained earnings Total long-term debt and equity 1. Combined annual sinking fund payments are $500 2 Subject to the rights of the preferred shares, the Class A shares are entitled to fixed cumulative dividends at the rate of $2.50 per share per annum and are convertible at the holder's option, at any time, into common shares on the basís of two common shares for one Class A share