11. As the financial vice president for Aether Media, you have the follow- ing information:

a. Calculate Aether's times-interest-earned ratio for next year assum- ing the firm raises $40 million of new debt at an interest rate of 7 percent.

b. Calculate Aether's times-burden-covered ratio for the next year as- suming annual sinking-fund payments on the new debt will equal $8 million.

c. Calculate next year's earnings per share assuming Aether raises the $40 million of new debt.

d. Calculate next year's times-interest-earned ratio, times-burden- covered ratio, and earnings per share if Aether sells 2 million new shares at $20 a share instead of raising new debt.

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Expected net income after tax next year before new financing $40 million Sinking-fund payments due next year on existing debt $14 million Interest due next year on existing debt $15 million Company tax rate 36% Common stock price, per share Common shares outstanding $20 18 million