Aristocrats Art reported the following trend analysis to its bank as an attachment to a loan application. Fixed Charge Ratio Times Interest Earned Ratio Debt Ratio Debt to Tangible Net Worth Ratio 2010 2009 2008 4.00 2.50 1.54 4.94 3.17 2.08 0.47 0.51 0.56 0.91 1.06 1.36 You have been asked to evaluate the long-term borrowing capacity. You know that a rule of thumb for this industry for the debt/ equity ratio is I to l. Required: a. Compute the debt/equity ratio for 2010, 2009, and 2008, using the debt ratio as a guide. b. Comment on the long-term borrowing ability of this firm