$($Capital structure analysis$)$ The Karson Transport Company currently has net operating income of $$505,000$ and pays interest expense of $$210,000.$ The company plans

to borrow $$1\mathrm{.}12$ 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 $$391,000$ 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

times. $($Round to two decimal places.$)$