Question
Please help solve the incorrect ones. In 2016, Natural Selection, a nationwide computer dating service, had $518 million of assets and $209 million of liabilities.
Please help solve the incorrect ones.
In 2016, Natural Selection, a nationwide computer dating service, had $518 million of assets and $209 million of liabilities. Earnings before interest and taxes were $129 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $24.9 million, and annual dividends were 30 cents per share on 21 million shares outstanding.
a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)
Liabilities-to-equity ratio | 0.68selected answer correct |
Times-interest-earned ratio | 4.45selected answer correct |
Times burden covered | 1.44 Incorrect |
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? | (77.5) selected answer incorrect | |
Principal and interest requirements? | 43.7 selected answer incorrect | |
Principal, interest, and common dividend payments? | 40.0 selected answer incorrect |
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