Spawn Inc. has provided the following data concerning its stockholders' equity accounts: Wessalr 1 $400,000$400,000 60000 60,000 Stockholders' equity Common stock, $5 par value Additional paid-in capital- common stock Retained earnings Total stockholders' equity 654000 630000 $1,114,000 $1,090,000 Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. 1 Calculate the company's price-earnings ratio for Year 2. 2 What does the P/E ratio for Spawn indicate about the market's confidence in the company