Hood Company's income statement information follows.

The average number of shares outstanding was 2,600 for 2009 and 2,300 for 2008.
Required
Compute the following ratios for Hood for 2009 and 2008.
a. Times interest earned.
b. Earnings per share based on the average number of shares outstanding.
c. Price-earnings ratio (market prices: 2009, $116 per share; 2008, $96 per share).
d. Return on average equity.
e. Netmargin.

2009 2008 Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders equity, December 31 (2007: S100,000) Common stock, par $50, December 31 S210,000 $130,000 42,500 31,500 4,000 117,500 115,000 55,000 27,500 4,500 158,500 130,000