$\backslash$table$[[$A$,$B$,C,$D$,$E$,$F$,$G$,H,1,1],[$Question: Financial Ratios $(10$ marks$)],[,,,,,,,,,],[$Below is the financial data for Eric's Electric Energy Inc. for the year ended December $31,2020$:$],[,$Market price per share,$150,,,,,],[,$Net Income,$1,750,000,,,,,],[,$Preferred Dividends declared,$75,000,,,,,,.],[,$Average # of common shares,$100,000,,,,,,],[,$Dividends per share,$2\mathrm{.}50,,,,,,],[,$Average common shareholders' equity,$10,000,000,,,,,,],[,$Total assets,$22,500,000,,,,$hs$,,],[,$Total Liabilities,$11,675,000,,,,,,],[,$Accumulated Other Comprehensive Income,$185,000,,,,,,],[,,,,,,,,,],[$Instructions$],[$Calculate the following amounts:$],[$a$),$Price$/$earnings ratio,$3$ Marks,,,,,,$],[$b$),$Dividend payout ratio,$2$ Marks,,,,,,$],[$c$),$Dividend yield,$2$ Marks,,,,,,$],[$d$),$Return on shareholders' equity,$2$ Marks,,,,,,$]]$

e$)$ Explain what contingent liabilities are and should they be recorded in the Financial Statements. Explain your response. $($