Medina Company reported these figures for 2016 and 2015:

Requirements
1. Compute Medina Company€™s earnings per share for 2016. Assume the company paid the minimum preferred dividend during 2016.
2. Compute Medina Company€™s price/earnings ratio for 2016. Assume the company€™s market price per share of common stock is $7.
3. Compute Medina Company€™s rate of return on common stockholders€™ equity for 2016. Assume the company paid the minimum preferred dividend during 2016.

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2016 2015 Income Statement -partial: Net Income Balance Sheet- partial 27,000 17,000 Dec. 31, 2016 Dec. 31, 2015 Total Assets $260,000 240,000 Paid-In Capital: Preferred Stock-5%, $4 Par Value: 75,000 shares authorized, 10,000 shares issued and outstanding 40,000 Common Stock-$2 Par Value; 65,000 shares 40,000 authorized, 50,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common 100,000 14,000 71,000 $225,000 100,000 4,000 46,000 200,000 Retained Earnings Total Stockholders' Equity