Use the information provided to answer the questions below. Be as specic as possible. Risk free rate is 1.77. Market cap of Under Armour is 17.43. Marginal tax rate is 36%. OperLease $ 56,452 $ 54,626 $ 54,626 4 5 6 7 8 9 10 $ 46,329 $ 46,329 $ 42,843 $ 42,843 $ 42,843 $ 42,843 is 42,843 $ 39,069 $ 39,069 $ 19,269 $ 19,269 5 19,269 Sponsorships $ 90,056 $ 64,194 $ 64,194 Total $ 146,508 $ 118,820 $ 118,820 $ 85,398 $ 85,398 $ 62,112 $ 62,112 $ 62,112 $ 62,112 $ 62,112 thllllls (intent liabilities Revolving aedit facility 5 _ Accounts payable 210,432 Accrued expemes 147.681 Current maturities of long Elm debt 28,951 Other current liabilities 34.563 Total cunent liabilit'es 421,627 Long term debt, net of current maturities 255,250 Other long term liabilities 67,906 Total liabilities 744,783 (In thousands) 2014 Net revenues $3,084,370 Cost of goods sold 1,572,164 Gross profit 1,512,206 Selling, general and administrative expenses 1,158,251 Income from operations 353,955 Interest expense, net (5,335) Other expense, net (6,410) (Inthmmm T 'Income before income taxes 3422:; North America $2,796,390 PTOVISIOII for income taxes & Other foreign countries and businesses 287,980 Net income W Total net revenues $3,084,370 1. What is the coverage ratio, interest bearing debt and PV of lease commitments for Under Armour? How does off-balance sheet debt compare to balance sheet debt? (Use interest bearing debt instead of total liabilities to dene debt.) 2. Compute the cost of debt. Under Armour does not have a credit rating. Infer the default spread from the synthetic rating