Selected data for Putin Company for 2014 and additional information on industry averages follow.
| Earnings (net income) |
|
$ |
195,600 |
| |
|
| Preferred stock (13,200 shares at $50 par, 4%) |
|
$ |
660,000 |
|
| Common stock (45,000 shares no par, market value $56) |
|
|
510,000 |
|
| Retained earnings |
|
|
562,500 |
|
| |
|
| |
|
$ |
1,732,500 |
|
| Less: Treasury stock |
|
|
|
|
| Preferred (1,800 shares) |
$54,000 |
|
|
|
| Common (1,800 shares) |
24,000 |
|
78,000 |
|
| |
| Total stockholders' equity |
|
|
$1,654,500 |
|
|
|
| Industry averages |
|
| Earnings per share |
$5.20 |
| Price-earnings ratio |
9.50 |
| Return on equity |
11.20% |
Required
a. Calculate the Putin Company's ratios. (Round your answers to 2 decimal places.)