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[The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data: ($ in millions) 2024: Net income
[The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data: ($ in millions)
2024:
Net income $180
Dividends on preferred stock $33
Average shares outstanding 225
Stock price $11.32
2023:
Net income $270
Dividends on preferred stock $24
Average shares outstanding 375
Stock price $10.27
2-a. Calculate the price-earnings ratio in 2023 and 2024.
2-b. In which year is the stock priced lower in relation to reported earnings?
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