The following information was provided by Joseph Company as of December 31,Year 2: 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.
Correct Answer:
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1)Earnings per share =...
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