Question: finance 320 need help 4 7 or 13 (6 complete) HW Score: 14.67%, 7.33 of 50 pts P4-7 (similar to) Question Help (Capital structure analysis)

finance 320 need help

4 7 or 13 (6 complete) HW Score: 14.67%, 7.33 of 50 pts P4-7 (similar to) Question Help (Capital structure analysis) The Karson Transport Company currently has net operating income of 5497.000 and pays interest expanse of $197,000. The company plans to borrow 51.12 million on which the fim will pay 12 percent interest. The borrowed money will be used to france an imasmart net is wee ded tu increase the firm's net operating income by 1395,000 a year a. What is Karson's limes interest earned ratio before the loan is taken out and the investment is made? b. What effect will the loan and the investment have on the firm's times Interest earned ratio? a. What is Karson's times interest eated railo before the loan 's taken out and the investment is made? The times interest earned ratio is i times. (Round to two decimal places.)

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