As the chief financial officer of Cascade Designs, you have the following information:

Next year's expected net income after tax but before new financing...................................................$70 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.........................................................................................................$40.00

Common shares outstanding..............................................................................................................25 million

Company tax rate.............................................................................................................................30%

A) Calculate Cascade's time-interest-earned ratio for next year assuming the firm raises $70 million in new debt at an interest rate of 6%.

B) Calculate Cascade's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $7 million

C) Calculate next year's earnings per share assuming Cascade raises the $70 million of new debt.

D) Calculate next year's times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Cascade sells 2 million new shares at $35 a share instead of raising new debt.