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You are considering purchasing the preferred stock of a firm but are concerned about its...

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Accounting

You are considering purchasing the preferred stock of a firm but are concerned about its capacity to pay the dividend. To help allay that fear, you compute the times-preferred-dividend-earned ratio for the past three years from the following data taken from the firms financial statements:
Year 20X120X220X3
Operating income $ 16,000,000 $ 12,000,000 $ 18,000,000
Interest 4,100,0003,700,00010,900,000
Taxes 4,800,0004,300,0005,700,000
Preferred dividends 1,400,0001,400,0001,300,000
Common dividends 2,500,0001,900,000
Round your answers to two decimal places.
20X1:
20X2:
20X3:
What does your analysis indicate about the firms capacity to pay preferred stock dividends?
Times preferred dividend earned has each year, which indicates the firm's capacity to pay the dividend has .

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