Below are the latest financial statements of EFG Company:

Income Statement ($ millions)

• Revenue: $6,000
• Cost of Goods Sold: $3,600
• Gross Profit: $2,400
• Operating Expenses: $1,700
• Operating Income: $700
• Interest Expenses: $130
• Income Tax Expense: $120
• Net Income: $450

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $90
  • Accounts Receivable: $500
  • Inventory: $600
  • Total Current Assets: $1,190
• Non-current Assets:
  • Property, Plant & Equipment: $2,100
  • Other Long-term Assets: $710
  • Total Non-current Assets: $2,810
  • Total Assets: $4,000
• Current Liabilities:
  • Accounts Payable: $400
  • Short-term Debt: $300
  • Total Current Liabilities: $700
• Long-term Liabilities:
  • Long-term Debt: $1,200
  • Total Liabilities: $1,900
• Equity:
  • Common Stock: $200
  • Retained Earnings: $1,900
  • Total Equity: $2,100
  • Total Liabilities & Equity: $4,000

Requirements:

a) Recommend financing strategies for EFG Company to raise $90 million for a merger without using current cash. b) Calculate the current ratio. c) Determine the debt-to-equity ratio. d) Evaluate the times interest earned (TIE) ratio.