What percentage decline in earnings before interest

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Question - In 2016, Natural Selection, a nationwide computer dating service, had $514 million of assets and $207 million of liabilities. Earnings before interest and taxes were $127 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $24.7 million, and annual dividends were 25 cents per share on 20 million shares outstanding.

a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)

a. liabilities to equity ratio

b. times interest earned ratio

c. times burden covered

b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: (Round your answers to 1 decimal place.)

a. interest payment requirements

b. principle and interest requirements

c. principle, interests, and common dividends payments?

Reference no: EM132893182

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