The following information was provided by Joseph Company as of December 31, 2014:
On the most recent trading date, Joseph's common shares sold at $36 and the preferred shares sold at $14.
The following information on industry averages is provided:
Earnings per share $2.06
Price-earnings ratio 13.2:1
Required:
1) Calculate and compare Joseph Company's ratios with the industry averages shown above. Round your answer to two decimal places.
2) Discuss whether you would invest in this company.

Question

The following information was provided by Joseph Company as of December 31, 2014:  
On the most recent trading date, Joseph's common shares sold at $36 and the preferred shares sold at $14.
The following information on industry averages is provided:
Earnings per share $2.06
Price-earnings ratio 13.2:1
Required:
1) Calculate and compare Joseph Company's ratios with the industry averages shown above. Round your answer to two decimal places.
2) Discuss whether you would invest in this company.

Quizplus · Accepted Answer

The Answer of The following information was provided by Joseph Company as of December 31, 2014:  
On the most recent trading date, Joseph's common shares sold at $36 and the preferred shares sold at $14.
The following information on industry averages is provided:
Earnings per share $2.06
Price-earnings ratio 13.2:1
Required:
1) Calculate and compare Joseph Company's ratios with the industry averages shown above. Round your answer to two decimal places.
2) Discuss whether you would invest in this company.

The Following Information Was Provided by Joseph Company as of December