Problem
Selected data for Putin Company for 2014 and additional information on industry averages follow.
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Earnings (net income)
|
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195,600
|
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Preferred stock (13,200 shares at $50 par, 4%)
|
|
660,000
|
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Common stock (45,000 shares no par, market value $56)
|
|
510,000
|
|
Retained earnings
|
|
562,500
|
|
|
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1,732,500
|
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Less: Treasury stock
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|
|
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Preferred (1,800 shares)
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54,000
|
|
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Common (1,800 shares)
|
24,000
|
78,000
|
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Total stockholders' equity
|
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1,654,500
|
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Industry averages
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|
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Earnings per share
|
5.20
|
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Price-earnings ratio
|
9.50
|
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Return on equity
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11.20%
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Required
a. Calculate the Putin Company's ratios. (Round your answers to 2 decimal places.)