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Financial Leaming Systems has 1.6 million shares of common stock outstanding and 60.433 shares of preferred stock. (The preferred pays annual cash dividends of $4.49

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Financial Leaming Systems has 1.6 million shares of common stock outstanding and 60.433 shares of preferred stock. (The preferred pays annual cash dividends of $4.49 a share, and the common pays annual cash dividends of 24 cents a share.) Last year, the company generated net profit (after taxes) of $6,244,323. The company's balance sheet shows total assets of \$74 million, total liabilities of $29 million, and $4 millon in preferred stock. The firm's common stock is currenty trading in the market at 549.75 a share. a. Given the preceding information, find the EPS, PJE ratio, and book value per share. b. What will happen to the price of the stock if EPS rises to $5.57 and the PiE rutio stays where it is? What will happen if EPS drops to $2.06 and the PVE doesit change? c. What will happen to the price of the stock it EPS rises to 55.57 and the P/E jumps to 18.7 times eamings? d. What will happen if both EPS and the PIE ratio drop-to $2.06 and 7.6 times earnings, respectively? 6. Comment on the effect that EPS and the PIE ratio have on the market price of the stock. a. The fim's EPS is ? (Round to two decimal places.)

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