A firm has net income of $211,400 and total equity of 1.2 million. There are 220,000 shares of stock outstanding at a price per share of $16.80. What is the firm's price-earnings ratio?

Ultra Fine Furnishings is in the process of selling its peripheral businesses and focusing on its upscale clients. In conjunction with this reorganization, the dividend will be decreased by 10 percent for the next two years. After that, the dividend will resume increasing at an annual rate of 6 percent. The required return on this stock is 14 percent and the last dividend paid was $2.80 a share. What is one share of this stock worth today?