The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share ? total shares outstanding) of $1,371,000 . Furthermore, the firm's income statement for the year just ended has a net income of $528,000, which is $0.280 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is $19.41

a. What price would you expect Underwood Motors shares to sell for?

b. What is the book value per share for Underwood's