In 2016, Natural Selection, a nationwide computer dating service, had $538 million of assets and $219 million of liabilities. Earnings before interest and taxes were $139 million, interest expense was $31 million, the tax rate was 40 percent, principal repayment requirements were $25.9 million, and annual dividends were 35 cents per share on 22 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) 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.)

In 2016, Natural Selection, a nationwide computer dating service, had $538 million of assets and $219 million of liabilities. Earnings before interest and taxes were $139 million, interest expense was $31 million, the tax rate was 40 percent, principal repayment requirements were $25.9 million, and annual dividends were 35 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-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, interest, and common dividend payments? %