Chapter $2$ Problem $16$

a$.$ For the years $20052009,$ calculate the following for Boeing:

i$.$ Total liabilities$-$to$-$equity ratio

ii$.$ Times$-$interest$-$earned ratio

iii. Times$-$burden$-$covered ratio

b$.$ What percentage decline in earnings before interest and taxes could Boeing have sustained in these years before failing to cover:

i$.$ Interest payments?

ii$.$ Interest and principal payments?

c$.$ What do these calculations suggest about Boeing$$s financial leverage during this period?