Peninsula Minerals Ltd's authorized share capital consists of an unlimited number of common shares, with 9.3 million outstanding. After some early successes, the company has failed to locate new mineral deposits and has also decreased its estimates of the amount of minerals in existing mines. As a result, earnings per share and the share price have been declining and are currently $0.17 and $0.68 per share respectively. Peninsula Minerals is considering a reverse stock split (one that decreases the number of shares outstanding instead of increasing them) of one-for-three.

Required

a. What is the current price/earnings ratio?

b. What is the current market value of the company?

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