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i have sent this question in multiple times and keep receiving the same answer. these are incorrect. As the chief financial officer of Adirondack Designs,
i have sent this question in multiple times and keep receiving the same answer. these are incorrect.
As the chief financial officer of Adirondack Designs, you have the following information: Next yeac's expected net incone after tax but before new financing Sinking-fund paysents due next year on the existing debt Interest due next year on the existing debt Connon stock price, per share Cothon shares outstanding Coepany tax rate a. Calculate Adirondack's times-interest-earned ratio for next year assuming the firm raises $54 million of new debt at an interest rate of 3 percent. b. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $6.5 million. c. Calculate next year's earnings per share assuming Adirondack raises the $54 million of new debt. d. Calculate next year's timestinterest-earned ratio, fimes-burden-covered ratio, and earnings per share if Acirondack sells 19 million new shares at $29 a share instead of raising new debt. Note: Do not round Intermediate calculations. Round "Earnings per share" answers to 2 decimal places and other answers to 1 decimal place Step by Step Solution
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