Milk Inc is a firm that has is assessing the value of PE ratio. is this positive data.

Earnings before interest and taxes$35 million

Interest expense$5 million

Preferred stock dividends$4 million

Common stock dividend payoutratio30%

Common shares outstanding$2 million

Effective corporate income tax rate40%

The expected common stock dividend per share

milk inc common stock will trade at the price/earnings ratio of 8, the market price per share.