Income Statement	2005
Sales	$8,000,000
Cost of goods sold	5,260,000
Gross profit	2,740,000
Selling and administrative expenses	1,500,000
Operating profit	1,240,000
Interest expenses	140,000
Income before tax	1,100,000
Tax expense	440,000
Net income	$660,000
EPS	$5.08
Dividends per share	$3.05
Balance Sheet		2005
Cash	$200,000
Accounts receivable	1,200,000
Inventory	1,840,000
Total current assets	3,240,000
Fixed assets	3,200,000
Total assets	$6,440,000
Accounts payable	800,000
Bank loan	600,000
Total current liabilities	1,400,000
Bonds payable	900,000
Total liabilities	2,300,000
Common stock(130,000 shares)	300,000
Retained earnings	3,840,000
Total Equity	4,400,000
Total liabilities & equity	$6,440,000

The requried rate of return is 14%

1. What is the ROE ratio for 2005?

2. What is the P/E ratio for 2005?