Night Corporation Gathered the Following Data at the End of the Accounting

Night Corporation gathered the following data at the end of the accounting period, December 31, 20X4: $$\begin{array} { | l | r | } \hline \text { Profit } & \$ 60,000 \\\hline \text { Net sales revenue } & 1,200,000 \\\hline \text { Interest expense } & 25,000 \\\hline \text { Total liabilities } & 200,000 \\\hline \text { Shareholders' equity (50,000 shares outstanding) } & 300,000 \\\hline \text { Average income tax rate } & 40 \% \\\hline \text { Dividends declared and paid during 20X4 } & 22,500 \\\hline \text { Market price per share of stock at year end } & \$ 9.00 \\\hline\end{array}$$ (a) Based on the above information, prepare an analysis by computing the following: $\begin{array}{|c|l|}\hline \text { (1) } & \text { Profit margin: } \underline{\quad\quad}\% \\\hline \text { (2) } & \text { Return on equity: } \underline{\quad\quad}\% \\\hline \text { (3) } & \text { Earnings per share: } \$ \underline{\quad\quad} \\\hline \text { (4) } & \text { Dividend yield ratio: }\underline{\quad\quad}\% \\\hline \text { (5) } & \text { Price/earnings ratio: } \underline{\quad\quad}\\\hline \text { (6) } & \text { Return on assets: }\underline{\quad\quad}\% \\\hline \text { (7) } & \text { Financial leverage:} \underline{\quad\quad}\%\\\hline\end{array}$
(b) Your interpretation of the financial leverage is: