Atlantic Northern Inc. just reported a net income of $$5,000,000,$ and its current stock price is $$25\mathrm{.}75$ per share. Atlantic Northern is forecasting an increase of $25\%$ for its net income next year, but it also expects it will have to issue $1,500,000$ new shares of stock $($raising its shares outstanding from $5,500,000$ shares to $7,000,000$ shares$).$

If Atlantic Northern's forecast turns out to be correct and its price$-$to$-$earnings $($P$/$E$)$ ratio does not change, what does management expect its stock price to be one year from now?

$$25\mathrm{.}18$ per share

$$25\mathrm{.}75$ per share

$$18\mathrm{.}88$ per share

$$31\mathrm{.}48$ per share

One year later, Atlantic Northern Inc.$\text{'}$s stock is trading at $$43\mathrm{.}50,$ and the company reports its common equity value as $$35,252,000.$ What is Atlantic Northern Inc.$\text{'}$s market$-$to$-$book $($M$/$B$)$ ratio? B$\mathrm{.}63$x Y

Is it possible for a company to have a negative EPS and thus a negative $\frac{P}{E}$ ratio? Yes grad