CALCULATING KEY STOCK PERFORMANCE METRICS:

The McMahan Company recently reported net profits after taxes of $15.8 million. It has $2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $60 per share.

a. compute the stock's earnings per share (EPS)

b. what is the stock's P/E ratio?

c. determine what the stock's dividends yield would be if it paid $1.75 per share to common stockholders