Determine the company price-earnings ratio

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Problem - Earnings per share and price-earnings - A company reports the following:

Net income $440,000

Preferred dividends $40,000

Shares of common stock outstanding 50,000

Market price per share of common stock $100

Required -

a. Determine the company's earnings per share on common stock.

b. Determine the company's price-earnings ratio.

Reference no: EM132879474

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