Book Exercise 11-19A (Algo) Using the P/E ratio LO 11-9 Lake Incorporated and River Incorporated reported net incomes of $207,000 and $171,000, respectively, for the most recent fiscal year. Both companies had 45,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $68, while River's sold for $72 per share. Required Hint a. Determine the P/E ratio for each company. Ask b. Based on the P/E ratios computed in Requirement a, which company do Investors belleve has the greater potential for growth in Income