Compute stock ratios (Learning Objective 4)

Evaluate the common stock of Shamrock 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.

Net income........ Dividends common...... Dividends-preferred. Total stockholders' equity at year-end (includes 80,000 shares of common stock)... Preferred stock, 6%.............. Market price per share of common stock ........ 2008 2007 $ 60,000 $ 52,000 20,000 20,000 12,000 12,000 780,000 600,000 200,000 200,000 $16.50 $13