Problem #4 A company reports Net Income for the current year as $1,505,000. Preferred stock dividends for the year total $55,150. At January 1, 100,000 shares of common stock were outstanding. On September 1, 9,000 shares of this common stock were re-purchased as treasury stock. 1. a) What is the companys Earnings Per Share? 2. b) What does Earnings Per Share measure? 3. c) If the P/E ratio is 3.2, what will the anticipated stock price be in the next period?