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Campbell Companys income statement information follows: Net sales $ 428,000 $ 264,000 Income before interest and taxes 114,000 84,000 Net income after taxes 55,560 63,000

Campbell Companys income statement information follows:

Net sales $ 428,000 $ 264,000
Income before interest and taxes 114,000 84,000
Net income after taxes 55,560 63,000
Interest expense 9,250 7,650
Stockholders equity, December 31 (Year 1: $192,000) 313,000 242,000
Common stock, December 31 195,000 175,000

The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Campbell for Year 3 and Year 2. a. Number of times interest was earned. (Round your answers to 2 decimal places.) b. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $74 per share).(Round your intermediate and final answers to 2 decimal places.) d. Return on average equity. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)

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