2018 2017 Net Income $49,500 $38,250 Dividendsâ€”Common 24,000 24,000 Dividendsâ€”Preferred 12,000 12,000 Total Stockholders' Equity at...

	2018	2017
Net Income	$49,500	$38,250
Dividendsâ€”Common	24,000	24,000
Dividendsâ€”Preferred	12,000	12,000
Total Stockholders' Equity at Year-End
(includes 75,000 shares of common stock)	790,000	610,000
Preferred Stock	230,000	230,000
Market Price per Share of Common Stock	$17.50	$12.00

calculate the price/earnings ratio for 2018 and 2017

(Round interim calculations to the nearest cent, $X.XX and your answers to two decimal places, X.XX.)

2018:
2017:

calculate the dividend yield on common stock for

2018 and 2017.

(Round interim calculations to the nearest cent, $X.XX, and your final answers to one tenth of a percent, X.X%.)

2018:		%
2017:		%

calculate the dividend payout for

2018 and 2017

(Round interim calculations to the nearest cent, $X.XX, and your final answers to the nearest whole percent, X%.)

2018:		%
2017:		%

Determine whether the common stock has increased or decreased in attractiveness during the past year.

The stock's attractiveness during 2018 as shown by the increase or decrease

in the price/earnings ratio. If an investor is looking at the stock for dividend potential, then the stock is less attractive or more attractive

than last year; both the dividend yield and the dividend payout decreased or increased

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000...

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000 Common stock 110,000 Additional paid in capital 7,401,500 Total paid-in capital 8,081,500 Retained earnings Treasury stock Total stockholders' equity $8,081,500 Date General Journal Debit Credit December 01, 2018 Dividends Dividends payable Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations: January 2...

The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock...

The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative, 4,200 shares authorized) $ 252,000 Common Stock ($ 3 stated value, 336,000 shares authorized) 840,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,600 Paid-in Capital in Excess of Stated Value—Common Stock 537,600 Retained Earnings 691,500 Treasury Stock ( 4,200 common shares) 33,600 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1...

The stockholders’ equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock...

The stockholders’ equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative, 5,000 shares authorized) $ 300,000 Common Stock ($ 4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 699,500 Treasury Stock ( 5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1...

The stockholders’ equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred Stock...

The stockholders’ equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $50 par, cumulative, 10,500 shares authorized) $ 375,000 Common Stock ($1 stated value, 1,900,000 shares authorized) 1,250,000 Paid-in Capital in Excess of Par—Preferred Stock 140,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,450,000 Retained Earnings 1,850,000 Treasury Stock (11,000 common shares) 55,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 24,500 shares...

The stockholders’ equity accounts of Flint Corporation on January 1, 2017, were as follows. Preferred Stock...

The stockholders’ equity accounts of Flint Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,950 shares authorized) $297,000 Common Stock ($4 stated value, 321,000 shares authorized) 1,070,000 Paid-in Capital in Excess of Par Value—Preferred Stock 14,850 Paid-in Capital in Excess of Stated Value—Common Stock 513,600 Retained Earnings 686,500 Treasury Stock (4,950 common shares) 39,600 . During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,950...

The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred...

The stockholders’ equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value—Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value—Common Stock 489,600 Retained Earnings 699,500 Treasury Stock (4,650 common shares) 37,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,860...

The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred...

The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative, 4,150 shares authorized) $ 249,000 Common Stock ($ 5 stated value, 345,000 shares authorized) 1,437,499 Paid-in Capital in Excess of Par Value—Preferred Stock 12,450 Paid-in Capital in Excess of Stated Value—Common Stock 552,000 Retained Earnings 694,000 Treasury Stock ( 4,150 common shares) 33,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb....

The stockholders’ equity section of Riverbed Corporation appears below as of December 31, 2017. 8% preferred...

The stockholders’ equity section of Riverbed Corporation appears below as of December 31, 2017. 8% preferred stock, $50 par value, authorized 101,534 shares, outstanding 91,534 shares $4,576,700 Common stock, $1.00 par, authorized and issued 10,678,400 shares 10,678,400 Additional paid-in capital 20,535,300 Retained earnings $134,073,000 Net income 36,960,000 171,033,000 $206,823,400 Net income for 2017 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $11,162,800 (before tax) as a result of a non-recurring...

The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred...

The stockholders’ equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,150 shares authorized) $249,000 Common Stock ($5 stated value, 345,000 shares authorized) 1,437,499 Paid-in Capital in Excess of Par Value—Preferred Stock 12,450 Paid-in Capital in Excess of Stated Value—Common Stock 552,000 Retained Earnings 694,000 Treasury Stock (4,150 common shares) 33,200 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,540...

The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock...

The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 688,500 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,000 shares...

Subjects