1. What will be the times-interest-earned ratio in the coming year if the company borrows an additional $70 million now?
2. What will be earnings per sharein the coming year if the company borrows an additional $70 million now?
3. What will be the times-interest-earned ratio in the coming year if the company sells 3 million shares now instead of borrowing additional funds?
4. What will be earnings per share in the coming year if the company sells 3 million shares now instead of borrowing additional funds?

Intro Expected payments for next year - Net income: $69 million - Interest due: \$18 million - Interest rate on new debt: 5% - Tax rate: 35% - Scheduled debt repayments: $42 million Current - Stock price: $72 - Number of shares outstanding: 20 million