The following financial data is provided for the year ended 31st December 2017 for Blue Capital Limited, a company which is subject to an income tax rate of 30%: Income statement ($ millions) Sales Cost of goods sold $4,200 $1,875 $2,325 $563 Gross Profit Selling, general and administrative expense Depreciation & amortisation expense $360 Interest expense $270 Income before tax $1,132 $340 Income tax expense Net income $792 Capitalisation at 31st December 2017 ($ millions) Long-term debt 6% serial bonds due 2025 $4,500 $750 Capital stock $0.40 cumulative redeemable preferred, stated value 5 per share 40,000,000 common shares, no par vale Total capital stock Additional paid-in capital (common shares) Retained earnings Total long-term debt and equity $1,500 $2,250 $1,500 $3,750 $12,000 Required: a) Using the above information, calculate the earnings coverage ratio of the 6% serial bonds and the earnings coverage ratio of the cumulative redeemable preference shares