A company reports the following:
|
Net income
|
$250,000
|
|
Preferred dividends
|
$15,000
|
|
Shares of common stock outstanding
|
20,000
|
|
Market price per share of common stock
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$35.00
|
a. Determine the company's earnings per share on common stock.
b. Determine the company's price-earnings ratio. Round to one decimal place.