The following information comes from the financial statements of Walker Company: Long-term debt $720,000 Total liabilities 1,094,400 Total stockholders' equity 960,000 Current assets 720,000 Earnings before income taxes 96,720 Interest expense 156,000 Required: Compute the following ratio values. State any assumptions that you make. 1. Debt ratio. Round your answer to one decimal place. % 2. Debt-to-equity ratio. Round your answer to two decimal places. 1.14 3. Times interest earned. Round your answer to two decimal places. times 4. The ratio that is likely to be most useful to a banker in deciding whether to grant a loan to a company that wishes to replace existing long-term debt is the: Debt-to-equity ratio