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In: Accounting

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

2018 2017
Net Income $49,500 $38,250
Dividends—Common 24,000 24,000
Dividends—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
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