Brill Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $2,100. The market price of common stock at the end of Year 2 was $2.32 per share.Required:a. What is the company's times interest earned ratio for Year 2?b. What is the company's debt-to-equity ratio at the end of Year 2?c. What is the company's equity multiplier at the end of Year 2?d. What is the company's net profit margin percentage for Year 2?e. What is the company's gross margin percentage for Year 2?f. What is the company's return on total assets for Year 2?g. What is the company's return on equity for Year 2?h. What is the company's earnings per share for Year 2?i. What is the company's price-earnings ratio for Year 2?j. What is the company's dividend payout ratio for Year 2?k. What is the company's dividend yield ratio for Year 2?l. What is the company's book value per share at the end of Year 2?

a.Times interest earned ratio = Earnings before interest expense and income taxes ÷ Interest expense= $35,857 ÷ $20,000 = 1.79 (rounded)b.Debt-to-equity ratio = Total liabilities ÷ Stockholders' equity= $601,000 ÷ $759,000 = 0.79 (rounded)c.Equity multiplier = Average total assets* ÷ Average stockholders' equity*= $1,340,000÷$754,500 = 1.78 (rounded)*Average total assets = ($1,360,000 + $1,320,000) ÷ 2 = $1,340,000**Average stockholders' equity = ($759,000 + $750,000) ÷ 2 = $754,500d.Net profit margin percentage = Net income ÷ Sales= $11,100÷$1,300,000 = 0.9% (rounded)e.Gross margin percentage = Gross margin ÷ Sales= $400,000 ÷ $1,300,000 = 30.8% (rounded)f.Return on total assets = Adjusted net income* ÷ Average total assets**= $25,100 ÷ $1,340,000 = 1.87% (rounded)*Adjusted net income = Net income + [Interest expense × (1 − Tax rate)]= $11,100 + [$20,000 × (1 − 0.30)] = $25,100**Average total assets = ($1,360,000 + $1,320,000) ÷ 2 = $1,340,000g.Return on equity = Net income ÷ Average stockholders' equity*= $11,100 ÷ $754,500 = 1.47% (rounded)*Average stockholders' equity = ($759,000 + $750,000) ÷ 2 = $754,500h.Earnings per share = Net Income ÷ Average number of common shares outstanding*= $11,100 ÷ 70,000 shares = $0.16 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $140,000 ÷ $2 per share = 70,000 sharesi.Earnings per share = Net Income ÷ Average number of common shares outstanding*= $11,100 ÷ 70,000 shares = $0.16 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $140,000 ÷ $2 per share = 70,000 sharesPrice-earnings ratio = Market price per share ÷ Earnings per share= $2.32 ÷ $0.16 = 14.50 (rounded)j.Earnings per share = Net Income ÷ Average number of common shares outstanding*= $11,100 ÷ 70,000 shares = $0.16 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $140,000 ÷ $2 per share = 70,000 sharesDividend payout ratio = Dividends per share* ÷ Earnings per share= $0.03 ÷ $0.16 = 18.8% (rounded)*Dividends per share = Common dividends ÷ Common shares (see above)= $2,100 ÷ 70,000 shares = $0.03 per share (rounded)k.Dividend yield ratio = Dividends per share* ÷ Market price per share= $0.03 ÷ $2.32 = 1.29% (rounded)*Dividends per share = Common dividends ÷ Common shares (see above)= $2,100 ÷ 70,000 shares = $0.03 per share (rounded)l.Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*= $759,000 ÷ 70,000 shares = $10.84 per share (rounded)*Number of common shares outstanding = Common stock ÷ Par value= $140,000 ÷ $2 per share =70,000 shares