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As the chief financial officer of Adirondack Designs, you have the following information: Next year's expected net income after tax but before new financing

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As the chief financial officer of Adirondack Designs, you have the following information: Next year's expected net income after tax but before new financing Sinking-fund payments due next year on the existing debt Interest due next year on the existing debt Common stock price, per share Common shares outstanding Company tax rate $ 44 million $ 19 million $ 14 million $ 30.0 24 million 40% a. Calculate Adirondack's times-interest-earned ratio for next year assuming the firm raises $54 million of new debt at an interest rate of 3 percent. b. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $6.5 million. c. Calculate next year's earnings per share assuming Adirondack raises the $54 million of new debt. d. Calculate next year's times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 1.9 million new shares at $29 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. Answer is complete but not entirely correct. a. Times interest earned b. Times burden covered c. Earnings per share d. Times interest earned d. Times burden covered d. Earnings per share FA 5.7 1.5 1.83 6.4 1.9 2.30

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