The most recent balance sheet of infinity information Systems (IIS) shows that the company has $35 million of common equity and 7 million shares of common stock outstanding. The companys common stock has a market value equal to $8 per share. IIS net income was $14 million. What are IIS (a) P/E ratio and (b) M/B ratio?

Horatio's Hot Dogs current assets equal $260,000. The company's return on assets (ROA) is 4 percent, its net income is $140,000, its long-term debt equals $1,755,000, and 35 percent of its assets are financed with common equity. Horatio's has no preferred stock. Compute the company's current ration.