# A company reports the following:Net income                                                    \$185,000Preferred dividends                                        \$25,000Shares of common stock outstanding             100,000Market price per share of common stock        \$20a. Determine the company’s earnings per share on common stock.b. Determine the company’s price-earnings ratio. Round to one decimal place.

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A company reports the following:
Net income                                                    \$185,000
Preferred dividends                                        \$25,000
Shares of common stock outstanding             100,000
Market price per share of common stock        \$20
a. Determine the company’s earnings per share on common stock.
b. Determine the company’s price-earnings ratio. Round to one decimal place.

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