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

Next years expected net income after tax but before new financing	$ 43	million
Sinking-fund payments due next year on the existing debt	$ 18	million
Interest due next year on the existing debt	$ 13	million
Common stock price, per share	$ 29.5
Common shares outstanding	23	million
Company tax rate	35%

1. Calculate Adirondacks times-interest-earned ratio for next year assuming the firm raises $53 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 $6.0 million.
3. Calculate next years earnings per share assuming Adirondack raises the $53 million of new debt.
4. Calculate next years times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 1.8 million new shares at $28 a share instead of raising new debt

5. a.	Times interest earned
   b.	Times burden covered
   c.	Earnings per share
   d.	Times interest earned
   d.	Times burden covered
   d.	Earnings per share