Data for Pittsford State Bank follow: (Click the icon to view the data.) Evaluate the common...

Transcribed Image Text:

Data for Pittsford State Bank follow: (Click the icon to view the data.) Evaluate the common stock of Pittsford 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. Begin by selecting the formula to calculate the price/earnings ratio. Price/earnings ratio = Market price per share of common stock + Earnings per share Now, 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.) Price/earnings ratio 2018 2017 35.96 33.33 Select the formula to calculate the dividend yield. Dividend yield = Annual dividend per share + Market price per share Now, 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%.) Dividend yield on common stock % 2018 % 2017 % Data table 2018 2017 Net Income $ 62,700 $ 51,900 Dividends-Common 18,000 18,000 Dividends-Preferred 11,400 11,400 Total Stockholders' Equity at Year-End (includes 90,000 shares of common stock) 800,000 600,000 Preferred Stock Market Price per Share of Common Stock $ 210,000 210,000 20.50 $ 15.00 Print Done Data for Pittsford State Bank follow: (Click the icon to view the data.) Evaluate the common stock of Pittsford 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. Begin by selecting the formula to calculate the price/earnings ratio. Price/earnings ratio = Market price per share of common stock + Earnings per share Now, 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.) Price/earnings ratio 2018 2017 35.96 33.33 Select the formula to calculate the dividend yield. Dividend yield = Annual dividend per share + Market price per share Now, 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%.) Dividend yield on common stock % 2018 % 2017 % Data table 2018 2017 Net Income $ 62,700 $ 51,900 Dividends-Common 18,000 18,000 Dividends-Preferred 11,400 11,400 Total Stockholders' Equity at Year-End (includes 90,000 shares of common stock) 800,000 600,000 Preferred Stock Market Price per Share of Common Stock $ 210,000 210,000 20.50 $ 15.00 Print Done