2018 2017 Net Income Dividends-Common Dividends-Preferred Total Stockholders' Equity at Year-End (includes 95,000 shares of common stock) Preferred Stock $ 71,900 $ 64,300 22,000 22,000 16,800 16,800 770,000 200,000 610,000 200,000 Market Price per Share of Common Stock $ 16.50 $ 10.00

2018 2017 Net Income Dividends-Common Dividends-Preferred Total Stockholders' Equity at Year-End (includes 95,000 shares of common stock) Preferred Stock $ 71,900 $ 64,300 22,000 22,000 16,800 16,800 770,000 200,000 610,000 200,000 Market Price per Share of Common Stock $ 16.50 $ 10.00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 76E

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Evaluating a stock as an investment Data for Oxford State Bank follow

Data for Oxford State Bank follow

Evaluate the common stock of Oxford 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 Round to two decimal places.

2018
2017
Net Income
Dividends-Common
Dividends-Preferred
Total Stockholders' Equity at Year-End (includes 95,000 shares of
common stock)
Preferred Stock
$ 71,900 $ 64,300
22,000
22,000
16,800
16,800
770,000
200,000
610,000
200,000
Market Price per Share of Common Stock
$ 16.50 $ 10.00

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