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Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $121,000 Preferred dividends $7,000 Shares of common stock outstanding 20,000 Market price

Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income $121,000
Preferred dividends $7,000
Shares of common stock outstanding 20,000
Market price per share of common stock $47.88

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. $fill in the blank 1

b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank 2

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