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

Next years expected net income after tax but before new financing	$ 45	million
Sinking-fund payments due next year on the existing debt	$ 20	million
Interest due next year on the existing debt	$ 15	million
Common stock price, per share	$ 30.5
Common shares outstanding	25	million
Company tax rate	45%

1. Calculate Adirondacks times-interest-earned ratio for next year assuming the firm raises $55 million of new debt at an interest rate of 5 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 $55 million of new debt.
4. Calculate next years times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 2.0 million new shares at $28 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	2.5
b.	Times burden covered	1.4
c.	Earnings per share	$0.60
d.	Times interest earned	3.0
d.	Times burden covered	1.7
d.	Earnings per share	$0.61