Rusek Corp. earned net income of $118,000 and paid the minimum dividend to preferred stockholders for 2025. Assume that there are no changes in common shares outstanding during 2025. Rusek Corp.’s books include the following figures: 

Requirements 

1. Compute Rusek Corp.’s EPS for the year. 

2. Assume Rusek Corp.’s market price of a share of common stock is $8 per share. Compute Rusek Corp.’s price/earnings ratio.

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Preferred Stock-3%, $50 par value; 2,000 shares authorized, 1,000 shares issued and outstanding Common Stock-$2 par value; 80,000 shares authorized, 53,000 shares issued, 51,800 shares outstanding Paid-In Capital in Excess of Par-Common Treasury Stock-Common; 1,200 shares at cost $ 50,000 106,000 460,000 (24,000)