Rundle 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: $191,000) Common stock, December 31 Year 3 $419,000 111,000 55,000 9,150 308,000 195,000 Year 2 $ 270,000 83,000 62,300 7,900 229,000 175,000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Rundle for Year 3 and Year 2. a. Number of times interest was earned. (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 prices: Year 3, $67 per share; Year 2, $73 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. (i.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).) X Answer is complete but not entirely correct. Year 3 Year 2 a. Times interest earned 12.13 times 10.51 times b. $ 6.01 x $ 7.89 X C. 11.15 x times 9.25 X times Earnings per share Price-earnings ratio Return on average equity Net margin d. 21.87 X % 30.80 X % e. 13.13 % 23.07 %