Problem 14-04 You are considering purchasing the preferred stock of a firm but are concerned about its capacity to pay the dividend. To help allay that fear, you compute the times-preferred-dividend-earned ratio for the past three years from the following data taken from the firm's financial statements: Year Operating income 20X1 20X2 20X3 $18,000,000 $19,000,000 $12,000,000 Interest 7,200,000 10,800,000 Taxes 4,900,000 5,100,000 4,100,000 4,900,000 Preferred dividends Common dividends 1,400,000 2,600,000 1,400,000 700,000 2,600,000 Round your answers to two decimal places. 20X1: 20X2: 20X3: What does your analysis indicate about the firm's capacity to pay preferred stock dividends? Times preferred dividend earned has declined each year, which indicates the firm's capacity to pay the dividend has diminished v