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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

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.

image text in transcribed \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}

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