Financial Learning Systems has 25 million shares of common stock outstanding and 52,90hahares of preferred stock (The preferred pays annual cash dividende of $5.14 a share, and the common pays annual cash dividends of 26 cents a share.) Last year, the company generated net profit (after taxes) of $7.223,640. The company's balance sheet shows total assets of 375 million total liabilities of S29 million, and $5 milion in preferred stock. The firm's common stock is currently trading in the market at $40.14 a share a. Given the preceding information find the EPS. PE ratio and book value per share b. What will happen to the price of the stock if EPS rises to $406 and the P/E ratio stays where it is? What will happen if EPS drops to $176 and the P/E doesn't change? c. What will happen to the price of the stock if EPS rises to $4.06 and the PE jumps to 197 times earnings? d. What will happen if both EPS and the P/E ratio drop to $176 and 77 times earnings, respectively? e. Comment on the effect that EPS and the P/E ratio have on the market price of the stock