2024	2023
Net Income	$58,200	$46,950
DividendsCommon	24,000	24,000
DividendsPreferred	16,200	16,200
Total Stockholders' Equity at Year-End (includes 75,000 shares of common stock)	750,000	600,000
Preferred Stock	190,000	190,000
Market Price per Share of Common Stock	$18.50	$13.00

Evaluate the common stock of

Warwick

State Bank as an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness during the past year. Round to two decimal places.

Question content area bottom

Part 1

Begin by selecting the formula to calculate the price/earnings ratio.

Price/earnings ratio

=

Market price per share of common stock Earnings per share

Part 2

Now, calculate the price/earnings ratio for

2024

and

2023.

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

	Price/earnings ratio
2024
2023