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A company reported the following: Net income $270,000 Preferred dividends $10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $36.40

A company reported the following:

Net income

$270,000

Preferred dividends

$10,000

Shares of common stock outstanding

20,000

Market price per share of common stock

$36.40

Calculate the companys

a) earnings per share on common stock, and

b) price-earnings ratio (do not round your answer)

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