In 2016, Natural Selection, a nationwide computer dating service, had $506 million of assets and $203 million of liabilities. Earnings before interest and taxes were $123 million, interest expense was $28 million, the tax rate was 40 percent, principal repayment requirements were $24 million, and annual dividends were 20 cents per share on 21 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

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?		%