1. You are considering purchasing the preferred stock of a firm but are concerned about its capacity to pay the dividend. Compute the times-preferred-dividend-earned ratio for the years 2011, 2012, and 2013 from the following information in thousands of dollars:

Year

2011

2012

2013

Operating Income

10,000

12,000

15,000

Interest

3,000

5,000

10,000

Taxes

4,000

5,000

4,000

Preferred Dividends

1,000

1,100

1,200

Common Dividends

3,000

2,000

2,000

Net Income

3,000

2,000

1,000

2011 ratio: __________________

2012 ratio: __________________

2013 ratio: __________________