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Consider the following financial information of Orville Distributing Company: (Click the icon to view the financial information.) Read the requirement. Select the two ratios
Consider the following financial information of Orville Distributing Company: (Click the icon to view the financial information.) Read the requirement. Select the two ratios used to evaluate common stock as an investment, select the corresponding formulas, and then calculate each ratio for 2021 and 2020. (Abbreviations used: EPS = earnings per share, P/E = price per earnings, ROA = rate of return on total assets, ROE = rate of return on common stockholders' equity, and ROS = rate of return on net sales. Round intermediary calculations and your final answers to three decimal places, X.XXX.) Ratio EPS Formula 2021 2020 P/E ratio Evaluate the common stock of Orville Distributing Company as an investment. (Assume that an increase in the common stock ratios indicates an attractive investment.) The stock's attractiveness Data table during 2021, as shown by the in the ratios. Overall, the common stock looks 2021 2020 Net income $ 89,000 $ 96,480 Dividends to common 26,000 12,000 Total stockholders' equity at year-end (includes 68,000 shares of common stock) Preferred stock, 5% 595,000 510,000 80,000 80,000 Market price per share of common stock at year-end $ 22.50 $ 16.66 Print Done attractive than it did a year ago. Next
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