11 Exercise 11-19A (Algo) Using the P/E ratio LO 11-9 19 nts 2 033401 eBook Hint Ask Lake Incorporated and River Incorporated reported.net incomes of $164,000 and $124,000, respectively, for the most recent fiscal year. Both companies had 40,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $57, while River's sold for $61 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number Company PE Ratio Lake, Incorporated River, Incorporated Required A Required B > Help Save & Exit Submit Check my work