The Following Information Was Provided by Joseph Company as of December

Essay

The following information was provided by Joseph Company as of December 31,Year 2:
$\begin{array}{llr}\text { Net income } & \$ 528,000 \\\text { Preferred stock, }(20,000 \text { shares at } \$ 10 \text { par, 4\%) } & \$ 200,000 \\\text { Common stock, (220,000 shares at } \$ 1 \text { par) } & \$ 220,000 \\\text { Paid-in capital in excess of par-common } & \$ 2,475,500 \\\text { Retained earnings } & \$ 3,824,500\end{array}$
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.