Question - Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income $745,000 Preferred dividends $42,000 Shares of common stock outstanding 95,000 Market price per share of common stock $31.82
a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.
b. Determine the company's price-earnings ratio. Round to one decimal place.