Aragorn Company reported these figures for 2025 and 2024:

Requirements 

1. Compute Aragorn Company’s earnings per share for 2025. Assume the company paid the minimum preferred dividend during 2025. Round to the nearest cent. 

2. Compute Aragorn Company’s price/earnings ratio for 2025. Assume the company’s market price per share of common stock is $6. Round to two decimals. 

3. Compute Aragorn Company’s rate of return on common stockholders’ equity for 2025. Assume the company paid the minimum preferred dividend during 2025. Round to the nearest whole percent. 

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Income Statement-partial: Net Income Balance Sheet-partial: Total Assets Paid-In Capital: Preferred Stock-2%, $8 Par Value; 18,000 shares authorized, 6,000 shares issued and outstanding Common Stock-$1 Par Value; 40,000 shares authorized, 25,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 2025 $ 20,600 Dec. 31, 2025 $207,640 $ 48,000 25,000 15,000 59,640 $ 147,640 2024 $ 30,000 Dec. 31, 2024 $ 208,000 $ 48,000 25,000 15,000 40,000 $ 128,000