Requirement:

1) Evaluate the common stock of evolution distributing company as an investment. Specifically use the three common stock ratios to determine whether the common stock increased or decreased in attractiveness during the past year. (The number of common stock shares was the same in 2015 & 2016). Round calculations and your final answer to three decimal places.

2016. 2015

Net income $114,000. $70,500

Dividends to common. $15,000. $15,000

Total stockholders equity $300,000. $515,000

at year end (includes 43,500 shares of common stock)

Preferred stock, 5% $105,000. $105,000

Market price per share $23.50. $17.25

Of common stock at year end