Selected data for Putin Company for 2014 and additional information on industry averages follow.

Industry averages
Earnings per share ..... $5.20
Price-earnings ratio ...... 9.50
Return on equity ....... 11.20%

Required
a. Calculate and compare Putin Company€™s ratios with the industry averages.
b. Discuss factors you would consider in deciding whether to invest in thecompany.

Eanings (net income) Preferred stock (13,200 shares at $50 par, 4%) Common stock (45,000 shares no par, market value $56) Retained eamings 195,600 $660,000 510,000 562,500 $1,732,500 Less: Treasury stock Preferred (1,800 shares) Common (1,800 shares) $54,000 24,000 78,000 $%1,654,500 Total stockholders' equity