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[The following information applies to the questions displayed below.] Nile Holdings Selected financial information as of Dec. 31, 2017 Last year's EBIT (2014) $ 175.0 million Expected EBIT (2015) $ 189.8 million Current portion of existing long-term debt, due 2015 $ 34 million Interest due in 2015 on existing debt $36 million Tax rate 35 % Common stock price per share $ 50.00 Common shares outstanding Dividends per share 20 million $ 2.00 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. Calculate the firm's pro forma 2018 times-interest-earned (TIE) ratio. b. Calculate the percentage EBIT can fall (below expected EBIT) before interest coverage dips below 1.0.