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perdahons 7. As the chief financial officer of Adirondack Designs, you have the follow- ing information: Next year's expected net income after tax but before

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perdahons 7. As the chief financial officer of Adirondack Designs, you have the follow- ing information: Next year's expected net income after tax but before new financing Sinking-fund payments due next year on the $42 million existing debt Interest due next year on the existing debt Common stock price, per share Common shares outstanding Company tax rate a. Calc $15 million $10 million $28.00 20 million 30% ulate Adirondack's times-interest-earned ratio for next year assuming the firm raises $50 million of new debt at an interest rate of 4 percent. b. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal c. Calculate next year's earnings per share assuming Adirondack raises the d. Calculate next year's times-interest-earned ratio, times-burden-covered $5 million. $50 million of new debt. ratio, and earnings per share if Adirondack sells 2 million new shares at $25 a share instead of raising new debt

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