Financial Learning Systems has $2\mathrm{.}1$ million shares of common stock outstanding and $64,933$ shares of preferred stock. $($The preferred pays annual cash dividends of $$4\mathrm{.}38$ a share, and the common pays annual cash dividends of $20$ cents a share.$)$ Last year, the company generated net profit $($after taxes$)$ of $$7,074,507.$ The company's balance sheet shows total assets of $$77$ million, total liabilities of $$28$ million, and $$5$ million in preferred stock. The firm's common stock is currently trading in the market at $$48\mathrm{.}35$ a share.

a$.$ Given the preceding information, find the EPS, P$/$E ratio, and book value per share.

b$.$ What will happen to the price of the stock if EPS rises to $$4\mathrm{.}82$ and the P$/$E ratio stays where it is$?$ What will happen if EPS drops to $$1\mathrm{.}88$ and the P$/$E doesn't change?

c$.$ What will happen to the price of the stock if EPS rises to $$4\mathrm{.}82$ and the P$/$E jumps to $20\mathrm{.}4$ times earnings?

d$.$ What will happen if both EPS and the P$/$E ratio drop$-$to $$1\mathrm{.}88$ and $7\mathrm{.}8$ times earnings, respectively?

e$.$ Comment on the effect that EPS and the P$/$E ratio have on the market price of the stock.