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Evaluate the common stock of Pittsford Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income
Evaluate the common stock of Pittsford Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income to reward the stockholders for the use of their money; use this information to determine whether the attractiveness of the stock increased or decreased during the past year. Round all ratios to two decimal places. (Click the icon to view the financial information.) Select the four ratios used to evaluate common stock as an investment, select the corresponding formulas, and then calculate each ratio for 2018 and 2017. (Abbreviations used: DPS = Dividends per share, EPS = Earnings per share, P/E = Pricelearnings, ROA = Return on assets, ROE = Return on equity, ROS = Return on sales. Enter ratios as percentages rounded to two decimal places, X.XX%. Round all dollar amounts to two decimal places, X.XX.) Ratio EPS 2018 1.25 2017 1.07 Dividend payout Formula Net income / Average number of common shares outstanding Dividends / Net income Net income / Average stockholders' equity Dividends / Average number of common shares outstanding .30 ROE DPS | 23.36 13.20 % % .01 15.29 11.03 % % Data Table ......... $ Net income............... Total dividends........ Common stockholders' equity at year-end. ..., 2018 107,000 $ 25,000 820,000 90.000 23.000 2017 85,000 $ 13,000 800,000 80,000 2016 83,000 10,500 765,000 78,000 LUI LIVIUGIUO......................................... Uly Lycal l . . . . . . . . . . . . . . . . . . . . Number of shares of common stock outstanding at year-end
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