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Hello, I answered this question, but when I checked it, it said that the answer was wrong. I would appreciate it if you checked it
Hello, I answered this question, but when I checked it, it said that the answer was wrong. I would appreciate it if you checked it and told me the correct answer.. Unfortunately, I only can check it one time. Thanks
In 2016, Natural Selection, a nationwide computer dating service, had $536 million of assets and $218 million of liabilities. Earnings before interest and taxes were $138 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $25.8 million, and annual dividends were 30 cents per share on 20 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered 2.46 4.76 1.92 b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: (Round your answers to 1 decimal place.) Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? 83.01% 48.01% 82.01%Step by Step Solution
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