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HI there! I am struggling with Part B, Interest Pymt Requirements? I know 88.96% is also wrong. Thank you! In 2016, Natural Selection, a nationwide
HI there! I am struggling with Part B, Interest Pymt Requirements? I know 88.96% is also wrong.
Thank you!
In 2016, Natural Selection, a nationwide computer dating service, had $530 million of assets and $215 million of liabilities. Earnings before interest and taxes were $135 million, interest expense was $28.9 million, the tax rate was 40 percent, principal repayment requirements were $25.5 million, and annual dividends were 40 cents per share on 21.9 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Answer is complete and correct. 0.68 Liabilities-to-equity ratio Times-interest-earned ratio 4.67 Times burden covered 1.89 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.) Answer is complete but not entirely correct. 77.7 X % 47.1% Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? 36.3 %Step by Step Solution
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