Lake Incorporated and the River, Incorporated reported net incomes of $286,000 and $253,000, respectively, for the most recent fiscal year. Both companies had 55,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $61, while River's sold for $65 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income?