Reference no: EM133239638

As the chief financial officer of Adirondack Designs, you have the following information: Next year's expected net income after tax but before new financing $ 42 million Sinking-fund payments due next year on the existing debt $ 17 million Interest due next year on the existing debt $ 12 million Common stock price, per share $ 29.0 Common shares outstanding 22 million Company tax rate 30% Calculate Adirondack's times-interest-earned ratio for next year assuming the firm raises $52 million of new debt at an interest rate of 4 percent. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $5.5 million. Calculate next year's earnings per share assuming Adirondack raises the $52 million of new debt. Calculate next year's times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 1.7 million new shares at $27 a share instead of raising new debt.