S12-10. (Learning Objective 4: Computing EPS and the price/earnings ratio) The annual report of Tri-State Cars, Inc., for the year ended December 31, 20X6, included the following items (in millions):

Requirements 1. Compute earnings per share (EPS) and the price/earnings ratio for Tri-State Cars’ shares.
Round to the nearest cent. The price of a Tri-State Car share is $57.12.
2. How much does the stock market say $1 of Tri-State Cars’ net income is worth?

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Preference share outstanding, 6% $425 Net income........ $510 Number of ordinary shares outstanding. 100