The balances sheet for Larry Underwood Motors shows a book value of stockholders equity (book value per share x total shares outstanding ) of $1,352,000. Furthermore, the firm's income statement for the year just ended has a net income $571,000 which is $0.256 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 18.49.

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

b. What is the book value per share for Underwoods shares?