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Problem 2 - 1 0 In 2 0 2 0 , Natural Selection, a nationwide computer dating service, had $ 5 3 4 million of
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In Natural Selection, a nationwide computer dating service, had $ million of assets and $ million of liabilities. Earnings before interest and taxes were $ million, interest expense was $ million, the tax rate was percent, principal repayment requirements were $ million, and annual dividends were cents per share on million shares outstanding.
a Calculate the following for Natural Selection:
Note: Round your answers to decimal places.
tableLiabilitiestoequity ratio,Timesinterestearned ratio,Times burden covered,
b What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to decimal place.
tableInterest payment requirements?,,
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