$($Capital structure analysis$)$ The Karson Transport Company currently has net operating income of $$496,000$ and pays interest expense of $$201,000.$ The company plans to borrow

$$1\mathrm{.}01$ million on which the firm will pay $11$ percent interest. The borrowed money will be used to finance an investment that is expected to increase the firm's net operating income by

$$407,000$ a year.

a$.$ What is Karson's times interest earned ratio before the loan is taken out and the investment is made?

b$.$ What effect will the loan and the investment have on the firm's times interest earned ratio?

a$.$ What is Karson's times interest earned ratio before the loan is taken out and the investment is made?

The times interest earned ratio is $2\mathrm{.}47$ times. $($Round to two decimal places.$)$

b$.$ What effect will the loan and the investment have on the firm's times interest earned ratio?

The new times interest earned ratio is times. $($Round to two decimal places.$)$