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EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows:

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EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows: $5,000,000 2,500,000 8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding Additional paid-in capital on preferred Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding Additional paid-in capital on common 2,000,000 18,000,000 Retained earnings 37,500,000 Total stockholders' equity $65,000,000 Net income for the year was $1,290,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $0.25 per share was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2017, was $23.75 per share. Required: 1. Compute the following ratios for the common stock: When required, round earnings per share and price/earnings ratio answers to two decimal places. For dividend payout and dividend yield ratios, round raw calculations to 4 decimal places, but enter each answer as a percentage to two decimal places; for example, .17856 rounds to .1786 and would be entered as 17.86, indicating 17.86%. a. Earnings per share b. Price/earnings ratio to 1 c. Dividend payout ratio % d. Dividend yield ratio % 2. Before recommending the stock of Cooperstown to a client, as a financial adviser, you would like to know: a. future earnings growth. b. risk of the stock. C. general economic trends and how they affect the company. d. all of these

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