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ces In 2016, Natural Selection, a nationwide computer dating service, had $508 million of assets and $204 million of liabilities. Earnings before interest and taxes

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ces In 2016, Natural Selection, a nationwide computer dating service, had $508 million of assets and $204 million of liabilities. Earnings before interest and taxes were $124 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $23.9 million, and annual dividends were 20 cents per share on 20 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: (Round your answers to 1 decimal place.) Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? % % %

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