a) You invested $8000 of your own money and borrowed $8000 from your broker to purchase shares of a company trading at a share price of $2. How many shares can you purchase?

b) You own shares of a company that reported after-tax earnings of $26 million and has issued 12 million shares of stock. The company's stock price is $9.50 per share. Calculate the company's price-earnings (PE) ratio