Below are the financial statements for KLM Enterprises:

Income Statement ($ millions)

• Revenue: $7,200
• Cost of Goods Sold: $4,400
• Gross Profit: $2,800
• Operating Expenses: $2,000
• Operating Income: $800
• Interest Expense: $140
• Tax Expense: $150
• Net Income: $510

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $110
  • Accounts Receivable: $600
  • Inventory: $700
  • Total Current Assets: $1,410
• Non-current Assets:
  • Property, Plant & Equipment: $2,500
  • Other Long-term Assets: $1,090
  • Total Non-current Assets: $3,590
  • Total Assets: $5,000
• Current Liabilities:
  • Trade Creditors: $500
  • Short-term Loans: $300
  • Total Current Liabilities: $800
• Long-term Liabilities:
  • Long-term Debt: $1,600
  • Total Liabilities: $2,400
• Equity:
  • Common Stock: $300
  • Retained Earnings: $2,300
  • Total Equity: $2,600
  • Total Liabilities & Equity: $5,000

Requirements:

a) Propose strategies for KLM Enterprises to raise $100 million for a new product line without using existing cash. b) Calculate the current ratio. c) Determine the debt-to-equity ratio. d) Evaluate the interest coverage ratio.