Evaluate the common stock of Webster State Bank as an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness during the past year.
Current year Last year
Net income .................................................................... $ 66,500............... $ 64,300
Dividends-common ..................................................... $ 22,440............... $ 22,440
Dividends-preferred .................................................... $ 11,500...............$ 11,500
Total stockholders' equity at year-end
(includes 88,000 shares of common stock) ....................$885,600.............. $683,200
Preferred stock (6%) ...................................................... $230,000............. $230,000
Market price per share of common stock ......................... $ 17.00................ $ 15.00