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Would you consider purchasing this stock

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Question - XYZ Corp. had additions to retained earnings for the year just ended of $595,000. The firm paid out $395,000 in cash dividends, and it had ending total equity of $18.3 million. The company has 370,000 shares of common stock outstanding, and the stock sells for $47 per share.

Calculated information based on values provided:

Net Income = $ 990,000

Earnings per Share = 2.6757

Dividends per Share = 1.06756

Book Value per Share = 49.459

P/E ratio = 17.5656

Required - Based on this data, would you consider purchasing this stock? Why or why not? Is it a good investment?

Reference no: EM133109671

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