Problem 2-10 - B

In 2016, Natural Selection, a nationwide computer dating service, had $528 million of assets and $214 million of liabilities. Earnings before interest and taxes were $134 million, interest expense was $29.5 million, the tax rate was 40 percent, principal repayment requirements were $25.4 million, and annual dividends were 25 cents per share on 22 million shares outstanding.

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?		%
Principal and interest requirements?		%
Principal, interest, and common dividend payments?		%