(Financing decisions) Emma's Electronics Incorporated has total assets of $59 million and total debt of $12 million. The company also has operating profits of $49 million with interest expenses of $7 million.

a. What is Emma's debt ratio?

b. What is Emma's times interest earned?

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

a. Emma's debt ratio is _____%. (Round to two decimal places.)