In 2020, Natural Selection, a nationwide computer dating service, had $518 million of assets and $209 million of liabilities. Earnings before interest and taxes were $129 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $24.9 million, and annual dividends were 30 cents per share on 21 million shares outstanding. a. Calculate the following for Natural Selection: Note: Round your answers to 2 decimal places: Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered 0.67 4.45 4.02: b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to 1 decimal place. Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? % % %

In 2020, Natural Selection, a nationwide computer dating service, had $518 million of assets and $209 million of liabilities. Earnings before interest and taxes were $129 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $24.9 million, and annual dividends were 30 cents per share on 21 million shares outstanding. a. Calculate the following for Natural Selection: Note: Round your answers to 2 decimal places: Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered 0.67 4.45 4.02: b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to 1 decimal place. Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? % % %

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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