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Financial Learning Systems has 3.1 million shares of common stock outstanding and 117,066 shares of preferred stock. (The preferred pays annual cash dividends of $4.65

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Financial Learning Systems has 3.1 million shares of common stock outstanding and 117,066 shares of preferred stock. (The preferred pays annual cash dividends of $4.65 a share, and the common pays annual cash dividends of 26 cents a share.) Last year, the company generated net profit (after taxes) of $7,627,939. The company's balance sheet shows total assets of $80 million, lotal liabilities of $30 million, and $5 milion in proferred stock. The firm's common stock is currently trading in the market at $46.72 a share. a. Given the preceding intormation, find the EPS, PIE ratio, and book value per share. b. What will happen to the price of the stock if EPS rises to $3.38 and the P/E ratio stays where it is? What will happen if EPS drops to $1.39 and the PIE doesn't change? c. What will happen to the price of the stock if EPS rises to $3.38 and the PIE jumps to 28.8 limes earnings? d. What will happen if both EPS and the PIE ratio drop-lo $1.39 and 12.1 times oamings, respoctivoly? e. Comment on the offect that EPS and the PIE ratio have on the marknt price of the stock. a. The firm's EPS is (Round to two decimal places.)

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