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In 2 0 2 0 , Natural Selection, a nationwide computer dating service, had $ 5 3 0 million of assets and $ 2 1

In 2020, 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:
Note: Round your answers to 2 decimal places.
\table[[Liabilities-to-equity ratio,0.68],[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: Note: Round your answers to 1 decimal place.
\table[[Interest payment requirements?,78.6,%
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