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In 2016, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were

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In 2016, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were $140 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $26 million, and annual dividends were 40 cents per share on 22 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Liabilities-to-equity ratio Times-interest-eamed 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

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