(Capital structure analysis) The Karsan Transport Company currertly has net operating income of $500,000 and pays interest expense of $200,000. The company plans to borrow $1,00 milion on which the firm will pay 10 percent interest. The borrowed money will be used to finance an investment that is expected to increase the fimb net operating income by $400,000 a year. a. What is Karson's times interest eamed rato belore the loan is taken out and the investment is made? b. What effect will the loan and the investment have on the frm's tmes interest earned ratio? a. What is Karson's times interest eamed ratio before the ban is taken out and the investnent is mude? The times interest eamed rato is times. (Round to two decimal places)