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 $ 45 million
Sinking-fund payments due next year on the existing debt $ 20 million
Interest due next year on the existing debt $ 15 million
Common stock price, per share $ 30.5
Common shares outstanding 25 million
Company tax rate 45%
Calculate Adirondack’s times-interest-earned ratio for next year assuming the firm raises $55 million of new debt at an interest rate of 5 percent.
Calculate Adirondack’s times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $6.0 million.
Calculate next year’s earnings per share assuming Adirondack raises the $55 million of new debt.
Calculate next year’s times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 2.0 million new shares at $28 a share instead of raising new debt.
Note: Do not round intermediate calculations. Round "Earnings per share" answers to 2 decimal places and other answers to 1 decimal place.

a. Times interest earned 2.5
b. Times burden covered 1.4
c. Earnings per share $0.60
d. Times interest earned 3.0
d. Times burden covered 1.7
d. Earnings per share $0.61