In 2016, Natural Selection, a nationwide computer dating service, had $540 million of assets and...
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Accounting
In 2016, Natural Selection, a nationwide computer dating service, had $540 million of assets and $220 million of liabilities. Earnings before interest and taxes were $140 million, interest expense was $30 million, the tax rate was 40 percent, principal repayment requirements were $26 million, and annual dividends were 40 cents per share on 22 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) 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.)
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