Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income	$560,000
Preferred dividends	$32,000
Shares of common stock outstanding	40,000
Market price per share of common stock	$63.36

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.