Baird Companys income statement information follows:

	Year 3				Year 2
Net sales	$	423,000			$	266,000
Income before interest and taxes		111,000				85,000
Net income after taxes		55,560				63,800
Interest expense		9,150				7,450
Stockholders equity, December 31 (Year 1: $199,000)		299,000				241,000
Common stock, December 31		192,500				172,500

The average number of shares outstanding was 7,700 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Baird for Year 3 and Year 2. a. Number of times interest was earned. b. Earnings per share based on the average number of shares outstanding. c. Price-earnings ratio (market prices: Year 3, $66 per share; Year 2, $74 per share). d. Return on average equity. (Round your percentage answers to 2 decimal places. e. Net margin. (Round your percentage answers to 2 decimal places.

\begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Year 3 } & \multicolumn{2}{c|}{ Year 2 } \\ \hline a. & Times interest earned & & times & & times \\ \hline b. & Earnings per share & & & & \\ \hline c. & Price-earnings ratio & & times & & times \\ \hline d. & Return on average equity & & % & & % \\ \hline e. & Net margin & & % & & % \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Year 3 } & \multicolumn{2}{c|}{ Year 2 } \\ \hline a. & Times interest earned & & times & & times \\ \hline b. & Earnings per share & & & & \\ \hline c. & Price-earnings ratio & & times & & times \\ \hline d. & Return on average equity & & % & & % \\ \hline e. & Net margin & & % & & % \\ \hline \end{tabular}