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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

Problem 2-10
In 2020, Natural Selection, a nationwide computer dating service, had $534 million of assets and $217 million of liabilities. Earnings before interest and taxes were $137 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $25.2 million, and annual dividends were 20 cents per share on 21 million shares outstanding.
a. Calculate the following for Natural Selection:
Note: Round your answers to 2 decimal places.
\table[[Liabilities-to-equity ratio,],[Times-interest-earned 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 1 decimal place.
\table[[Interest payment requirements?,,%
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