15.15 Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income	$493,000
Preferred dividends	$28,000
Shares of common stock outstanding	30,000
Market price per share of common stock	$187.55

a. Determine the company's The profitability ratio of net income available to common shareholders to the number of common shares outstanding.earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $

b. Determine the company's The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share.price-earnings ratio. Round to one decimal place.