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Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The nterest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last rear and $0.40 this year. The market value of the company's common stock at the end of this year was $18. All of the company's sales are on account. Bonds payable Total liabilities \begin{tabular}{rr} 5,000 & 5,000 \\ \hline 15,400 & 14,300 \\ \hline \end{tabular} Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital \begin{tabular}{rr} 800 & 800 \\ 4,200 & 4,200 \\ \hline 5,000 & 5,000 \end{tabular} Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} 29,880 & 26,660 \\ \hline 34,880 & 31,660 \\ \hline$50,280 & $45,960 \\ \hline \end{tabular} Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.)
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