Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income	$564,500
Preferred dividends	$32,000
Shares of common stock outstanding	75,000
Market price per share of common stock	$88.04

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.