Paul Sabin organized Sabin Electronics $10$ years ago to produce and sell several electronic devices on which he had secured patents.Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $$570,000$ long$-$term loan from Gulfport State Bank, $$135,000$ of which will be used to bolster the Cash account and $$435,000$ of which will be used to modernize equipment. The company's financial statements for the two most recent years follow:During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are $3/10,$ n$/30.$ All sales are on account.Assume Paul Sabin has asked you to assess his company's profitability and stock market performanceAnswer the questions below Required:$1.$ You decide first to assess the company's stock market performance. For both this year and last year, compute:a$.$ The earnings per share. There has been no change in common stock over the last two years.b$.$ The dividend yield ratio. The company's stock is currently selling for $$60$ per share; last year it sold for $$45$ per share.c$.$ The dividend payout ratio.d$.$ The price$-$earnings ratio. $($Assume that the industry norm for the price$-$earnings ratio is $9)$e$.$ The book value per share of common stock$\mathrm{.}2.$ You decide next to assess the company's profitability. Compute the following for both this year and last year:a$.$ The gross margin percentage.b$.$ The net profit margin percentage.c$.$ The return on total assets. $($Total assets at the beginning of last year were $$2,510,000.)$d$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year was $$1,599,000.)$e$.$ Is the company's financial leverage positive or negative?