In 2016, Natural Selection, a nationwide computer dating service, had $534 million of assets and $217 million of liabilities. Earnings before interest and taxes were $137 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $25.2 million, and annual dividends were 20 cents per share on 21 million shares outstanding.

1. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)

a)Liabilities to equity ratio:

b)Times-interested-earned ratio:

c)Times burden covered:

1a.. 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.)

a) interest payment requirements?

b) principal and interest requirements?

c) principal, interest and common dividend payments?