As the chief financial officer of Adirondack Designs, you have the following information:

Next years expected net income after tax but before new financing	$ 35	million
Sinking-fund payments due next year on the existing debt	$ 10	million
Interest due next year on the existing debt	$ 5	million
Common stock price, per share	$ 25.5
Common shares outstanding	15	million
Company tax rate	35%

1. Calculate Adirondacks times-interest-earned ratio for next year assuming the firm raises $45 million of new debt at an interest rate of 2 percent.
2. Calculate Adirondacks times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $2.0 million.
3. Calculate next years earnings per share assuming Adirondack raises the $45 million of new debt.
4. Calculate next years times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 1.0 million new shares at $20 a share instead of raising new debt.

Note: Do not round intermediate calculations. Round "Earnings per share" answers to 2 decimal places and other answers to 1 decimal place.

a. times interest earned

b. times burden covered

c. earnings per share

d. times interest earned

d. times burden covered

d. earnings per share