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Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $143,000 Preferred dividends $8,000 Shares of common stock outstanding 15,000 Market price
Earnings per Share and Price-Earnings Ratio
A company reports the following:
| Net income | $143,000 |
| Preferred dividends | $8,000 |
| Shares of common stock outstanding | 15,000 |
| Market price per share of common stock | $126 |
a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $
b. Determine the company's price-earnings ratio. Round to one decimal place.
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