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Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income $1,224,000
Preferred dividends $69,000
Shares of common stock outstanding 75,000
Market price per share of common stock $89.32
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.
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