Basic Earnings per Share

Monona Company reported net income of $$29,975$ for $2016.$ During all of $2016,$ Monona had $1,000$ shares of $10\%,$ $$100$ par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of $2016,$ the company had $7,000$ shares of common stock outstanding. On April $2,2016,$ the company issued another $2,000$ shares of common stock so that $9,000$ common shares were outstanding at the end of $2016.$ Common dividends of $$17,000$ had been paid during $2016.$ At the end of $2016,$ the market price per share of common stock was $$17\mathrm{.}50.$

Required:

Compute Monona's basic earnings per share for $2016.$ If required, round your answer to two decimal places.

$fill in the blank $1$

per share

Compute the price$/$earnings ratio for $2016.$ If required, round your answer to one decimal place.

fill in the blank $2$

times