Question
In 2016, Natural Selection, a nationwide computer dating service, had $526 million of assets and $213 million of liabilities. Earnings before interest and taxes were
In 2016, Natural Selection, a nationwide computer dating service, had $526 million of assets and $213 million of liabilities. Earnings before interest and taxes were $133 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $25.3 million, and annual dividends were 25 cents per share on 20 million shares outstanding.
a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)
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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.)
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