A. The firms stock has a P/E of 23 times earnings per share, with eps of $2.25. What is the current price of the stock.

B.

Calculate earnings per share based on the following information.

Sales...................................................................................... $900,000

Shares outstanding................................................................ 30,000

Cost of goods sold................................................................. 400,000

Interest expense..................................................................... 40,000

Selling and administrative expense....................................... 60,000

Depreciation expense............................................................ 20,000

Preferred stock dividends...................................................... 80,000

Taxes..................................................................................... 50,000