In 2016, Natural Selection, a nationwide computer dating service, had $510 million of assets and $205 million of liabilities. Earnings before interest and taxes were $125 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $24.5 million, and annual dividends were 40 cents per share on 20.5 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 and interest and common dividend payments