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In 2016, Natural Selection, a natlonwide computer dating service, had $522 million of assets and $211 mllion of llabilitles. Earnings before Interest and taxes were
In 2016, Natural Selection, a natlonwide computer dating service, had $522 million of assets and $211 mllion of llabilitles. Earnings before Interest and taxes were $131 million, Interest expense was $28 million, the tax rate was 40 percent, prlncipal repayment requirements were $25.1 million, and annual dividends were 20 cents per share on 21.5 millon shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 declmal 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 sustalned before falling to cover: (Round your answers to 1 declmal place.) Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments?
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