### Compute the earning per share and price-earning ratio

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##### Reference no: EM13215145

The 2008 financial statements for Fay Thill Country Stores show total assets of \$490,000, total liabilities of \$290,000, net sales of \$1,800,000, net income of \$450,000, income from operations of \$520,000, cost of goods sold of \$1,080,000, preferred dividends of \$225,000, and interest expenses of \$20,000. Total assests and total liabilities for 2007 were \$430,000 and \$270,000, respectively. Compute the following ratios for 2008:

1. Profit margin
2. Return on assets
3. Return on equity
4. Times-interest-earned
5. Debt ratio

a market price of \$25 per share, and 100,000 shares of common stock outstanding, compute the following for 2008:

1. Earning per share
2. Price/earning ratio

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