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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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