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Please refer to the financial information for Nile Holdings above. Nile must decide how to finance a $$100$ million investment. Assume Nile raises $$100$

million of new debt at the end of $2017$ at an interest rate of $7\%.$

a$.$ Assuming Nile must make a $$20$ million payment on the new debt next year, calculate the firm's times$-$burden$-$covered ratio and times$-$common$-$

covered ratio $($i$.$e$.,$ the number of times EBIT could cover interest, principal payments, and dividends$).$

b$.$ As Nile's banker, would you be comfortable loaning the company this new debt? Briefly explain why, or for what reasons you'd be comfortable or

uncomfortable.