To answer the following questions, use Boeing Company’s financial statements available for download from McGraw-Hill’s Connect or your course instructor (see the Preface for more information).

a. For the years 2005–2009, calculate the following for Boeing:

i. Debt-to-equity ratio
ii. Times-interest-earned ratio
iii. Times-burden-covered ratio

b. What percentage decline in earnings before interest and taxes could Boeing have sustained in these years before failing to cover:

i. Interest payments?
ii. Interest and principal payments?

c. What do these calculations suggest about Boeing’s financial leverage during this period?