Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Perez Company's income statement information follows Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 11 $192,000) Common stock, December 31 Year 3 $424,000 116,000 55,800 8,950 296,000 197,500 Year 2 $264,000 82,000 62,569 7,850 241,000 172,500 The average number of shares outstanding was 7900 for Year 3 and 6,900 for Year 2 Required Compute the following ratios for Perez 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, $64 per share Year 2. $74 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. (.e., 0.2345 should be entered os 23.45).) e. Net margin (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered os 23.45).) Year 3 times Year 2 times a. Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin times times % % % %