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In 2020, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were
In 2020, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were $140 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $26 million, and annual dividends were 40 cents per share on 22 million shares outstanding.
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In 2020, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were $140 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $26 million, and annual dividends were 40 cents per share on 22 million shares outstanding. b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to 1 decimal placeStep by Step Solution
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