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For 2015, Willis Corporation reported after-tax net income of $550,000. During the year, the number of outstanding shares of 6% $100 par preferred stock remained

For 2015, Willis Corporation reported after-tax net income of $550,000. During the year, the number of outstanding shares of 6% $100 par preferred stock remained constant at 3,000, and 200,000 shares of common stock were outstanding all year. The company's total stockholders' equity at December 31, 2015, was $6,500,000. Willis's common stock was selling at $28 per share at the end of the year. All dividends for the year were paid, including a dividend of $1.50 per share to common stockholders. Round your percentage to two decimal places. (e.g., .1562 as 15.62%)

**i don't need this to be written for me, i just need a few short answers to the following to get me going:

  • Justify whether or not you would invest in this company.
  • Incorporate the computations you performed to rationalize your decision.

Below are my calculations:

  • Earnings per share 550,000-18000/200000=$2.66
  • Book value per share of common stock 6500000-200000/200000=$31.5
  • Price-earnings ratio 28/2.66=$10.53
  • Dividend yield 1.50/28=5.36

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