The Stockholders Equity section of the balance sheet for Cooperstown Corp. at the end of 2016 appears as follows:

Cooperstown Corp.

Balance Sheet (Partial)

December 31, 2016

1	8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 55,000 shares issued and outstanding	$5,500,000.00
2	Additional paid-in capital on preferred	2,750,000.00
3	Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding	2,000,000.00
4	Additional paid-in capital on common	18,000,000.00
5	Retained earnings	39,500,000.00
6	Total stockholders equity	$67,750,000.00

Net income for the year was $1,340,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $0.34 per share was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2016, was $31.50 per share.

	Required:
1.	Compute the following ratios for the common stock:
a.	Earnings per share
b.	Price/earnings ratio
c.	Dividend payout ratio
d.	Dividend yield ratio
2.	Assume that you are an investment adviser. What other information would you want to have before advising a client regarding the purchase of Cooperstown stock?

X

Questions

1. Compute the following ratios for the common stock:

Additional Instructions

a. Earnings per share		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:

Future earnings growth.