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 dividend 20 cents per share on 21 shares outstanding.

Calculate the following for Natural Selection:

a) Liability to equity ratio

b) Times interest earned ratio

c) Times burden covered

What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover:

a) Interest payment requirements?

b)Principal and interest requirements?

c)Principal, interest, and common dividend payments?