7. Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after-tax earnings of $9,700,000 and has issued 7,000,000 shares of common stock. The stock is currently selling for $32 a share. (LO12.3)

a. Calculate the earnings per share for National Computers.

b. Calculate the price-earnings (PE) ratio for National Computers.