Determine the company price-earnings ratio

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Question - Earnings per Share and Price-Earnings Ratio - A company reports the following:

Net income $936,500

Preferred dividends $53,000

Shares of common stock outstanding 95,000

Market price per share of common stock $39.99

Required -

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

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

Reference no: EM133126303

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