Question: Financial Ratios (10 marks) D 14 5 Net Income 4 Below is the financial data for Eric's Electric Energy Inc. for the year ended December 31, 2020 Market price per share 150 1,750,000 G Preferred Dividends declared 25,000 7 Average # of common shares 100,000 8 Dividends per share 2.50 9 Average common shareholders' equity 10,000,000 10 Total assets 22,500,000 11 Total Liabilities 11,675,000 12 Accumulated Other Comprehensive Income 185,000 13 14 Instructions 15 Calculate the following amounts: 16. a) Price/earnings ratio 17 b) Dividend payout ratio 18 c) Dividend yield 19. d) Return on shareholders' equity 3 Marks 2 Marks 2 Marks 2 Marks 20 e) Explain what contingent liabilities are and should they be recorded in the Financial Statements. Explain your response.( 21 22 23 24