Ellie's Electronics Incorporated has total assets of $66 million and total debt of $8 million. The company also has operating income of $52 million with interest expenses of $3million.

a. What is Ellie's debt ratio?

b. What is Ellie's times interest earned?

c. Based on the information above, would you recommend to Ellie's management that the firm is in a strong enough position to assume more debt and increase interest expense to $7 million.