The income statement for Christiansen, A/S, appears below.

CHRISTIANSEN, A/S

Income Statement

For the Year Ended December 31, 2017

Net sales ................................................................................................... €400,000

Cost of goods sold ...................................................................................... 235,000

Gross profit ................................................................................................. 165,000

Expenses (including €14,000 interest and €17,000 income taxes) ...... 105,000

Net income ..................................................................... € 60,000

Additional information:

1. The weighted-average ordinary shares outstanding in 2017 were 32,000 shares.

2. The market price of Christiansen, A/S was €10.80 per share in 2017.

3. Cash dividends of €20,000 were paid, €5,000 of which were to preference shareholders.

Instructions

Compute the following ratios for 2017.

(a) Earnings per share.

(b) Price-earnings ratio.

(c) Payout ratio.

(d) Times interest earned?