In 2020, Natural Selection, a nationwide computer dating service, had $536 million of assets and $218 million of liabilities. Earnings before interest and taxes were $138 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $25.8 million, and annual dividends were 30 cents per share on 20 million shares outstanding.

Liabilities-to-equity ratio ?

Times-interest-earned ratio ?

Times burden covered ?

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

Interest payment requirements?

principal and interest requirements ?

Principal, interest, and common dividend payments ?

Interest payment requirements?	7.8selected answer incorrect	%
	34.0selected answer incorrect	%
Principal, interest, and common dividend payments?	38.0selected answer incorrect	%