1. A company has the following market and accounting information.

   Common shares outstanding =			2,500,000
   Common cash dividend ($ / sh) =			$ 0.25
   Preferred stock outstanding =			100,000
   Preferred cash dividend ($ / sh) =			$ 5.00
   Last year, net income =			$ 6,850,000
   Total assets =			78,000,000
   Total liabilities =			32,000,000
   Preferred stock =			5,000,000
   Common stock price ($ / sh) =			$ 45.00

   What is the company's earnings per share and price-to-earnings ratio?

   	a.	EPS = $2.00; P/E = 22.00
   	b.	EPS = $2.74; P/E = 16.4
   	c.	EPS = $2.24; P/E = 20.09
   	d.	EPS = $2.54; P/E = 17.72
   	e.	EPS = $1.87; P/E = 24.06