A-3 (Coverage ratio) The firm in the two preceding problems alsohad $6 million of principal repayments during the latest 12 months.Its marginal tax rate is 40%. Calculate the debt service coverageratio. A-4 (WACC with rebalancing) Nathans Catering is a gourmetcatering service located in Southampton New York. It has anunleveraged required return of r = 43%. Nathans rebalances itscapital structure each year to a target of L = 0.52. T* = 0.20.Nathans can borrow currently at a rate of r