Fessenden Corporation has accumulated a significant amount of debt as a result of debt$-$financed acquisitions of other companies. It is currently considering acquiring one of its competitors, Sonar Corporation. Fessenden's existing debt covenants stipulate that it cannot go beyond a debt to equity ratio of $1\mathrm{.}25$:$1$ and a net debt as a percentage of capitalization ratio of $0\mathrm{.}90$:$1.$ The acquisition of Sonar will cost $$83$ million. Fessenden's current level of equity is $$440$ million and its current level of interest$-$bearing debt is $$563$ million. Fessenden has a cash balance of $$79$ million. It will finance the acquisition with a $10-$year bond of $$83$ million that carries a $5\%$ interest rate sold at par.

Determine Fessenden's debt to equity ratio and net debt as a percentage of capitalization ratio prior to the proposed acquisition.

$($Round answers to $2$ decimal places, e$.$g$.1\mathrm{.}25.)$

Debt to Equity

:$1$

Net Debt as a Percentage of Total Capitalization

:$1$

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