Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Balrd Company's Income statement Information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $193,000) Common stock, December 31 Year $421,900 118,000 55,080 9,350 310, eee 192,500 Year 2 $ 254, 000 78,000 62,800 2,7ee 239,000 172,500 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 eamed (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 pricesi Year 3. $69 per share: Year 2. $78 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. (l.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).) Year! Year 2 Times interest earned times times ames b. Earnings per share c Price-earnings ratio d. Return on average equity e. Net margin times 6 %