Please use the balance sheet and income statement to complete the task required

a. Compute or determine the following for the years 2014-2015:

1.Degree of financial leverage

2.Earnings per common share

3. Price/earnings ration

4.Percentage of earnings retained

5.Dividend payout

6.Dividend yield

7.Book value per share

8.Materiality of options (use stock options outstanding)

b. Comment from the perspective of an investor

Task Donna Corporation Balance Sheets December 31, 2014 through December 31, 2018 2015 2014 28,000 130,000 146,000 304,000 418,000 722,000 27,000 128,000 144,000 299,000 415,000 714,000 (Dollars in thousands) Assets Currents assets Cash Accounts receivable Inventories Total current assets Property, plant, and equipment, net Total assets Liabilities and Stockholders Equity Current Liabilities: Accounts payable Income taxes Total current liabilities Long-term debt Stockholders equity: Preffered stock Common stock Paid-in capital in excess of par, common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity 124,000 13,000 137,000 68,000 125,000 12,000 137,000 69,000 82,000 290,000 70,000 75,000 517,000 722,000 75,000 290,000 70,000 73,000 508,000 714,000 Statement of Earnings Year ended December 31, 2014-2018 (In thousands, except per share) Net sales Cost of goods sold Gross profit 2015 935,000 -579,000 356,000 2014 920,000 -570,000 350,000 Selling and administrative expense Interest expense -225,000 -6.900 -224,000 -7,000 Earnings from continuing operations before income taxes Income taxes Earnings from continuing operations Extraordinary gains, net of taxes Net earnings 124,100 -30,400 93,700 0 93,700 119,000 -37,400 81,600 0 81,600 Earnings per share: Continuing operations 3.23 2.81 Extraordinary gain Net earnings per share 0.00 3.23 0.00 2.81 Additional data 1. Preferred stock dividends (in thousands): 2015 6,600 2014 6,000 2. Common shares outstanding, 29,000,000 (Preferred stock dividends in thousands) (2014-2015) 3. Stock options outstanding 1,000,000 (actual) (2014-2015) 4. Dividends per common share (actual) 2015 2.93 2014 2.80 5. Market price per common share (actual) 2015 37.00 2014 29.00