finance 320

Score: 0 of 4 pts Sa 7 of 13 (6 complete) P4-7 (similar to) HW Score: 14 67% 7.33 of 50 Question Help (Capital structure analysis) The Karson Transport Company currently has net operating income of $497,000 and pays interest expense of $197.000. The company plans to borrow $1.12 million on which the firm will pay 12 percent interest. The borrowed money will be used to finance an investment that is expected to increase the firm's net operating income by $395,000 a year, a. What is Karson's times interest eamed 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 eamed ratio before the loan is taken out and the investment is made? The times interest eamed ratio istimes. (Round to two decimal places.) Check Ammer Enter your answer in the answer box and then click Check Answers clear 4211 @ 102 part remaining 9 Type here to search