Earnings per Share and Price-Earnings Ratio A company reports the following: Net income Preferred dividends $310,000 $18,000 Shares of common stock outstanding 40,000 Market price per share of common stock $25.55 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.