Equity and Market Ratios. At December 31, 1998, Richmond Company had 100,000 shares of \(£ 10\) par value stock issued and outstanding. Shares outstanding during 1998 did not change. Total shareholders' equity at December 31, 1998, was \(£ 2,800,000\). Net income for the year ended December 31 , 1998, was \(£ 400,000\). During 1998, Richmond paid \(£ 3\) per share in dividends. The quoted market price of Richmond's stock on a London stock exchange averaged \(£ 32\) during 1998.

\section*{Required:}

1. What is the price-earnings ratio at the end of 1998 ?

2. What is the dividend yield at the end of 1998?