**Earnings per Share and Price-Earnings Ratio**A company reports the following financial data:- **Net income:** $4,410,000- **Preferred dividends:** $52,000- **Shares of common stock outstanding:** 90,000- **Market price per share of common stock:** $108.48**Tasks:**a. **Determine the company's earnings per share (EPS) on common stock.** Round your answer to the nearest cent. Use the rounded answer of requirement a for the subsequent requirement, if required.b. **Determine the company's price-earnings (P/E) ratio.** Round to one decimal place.---**Instructions for Calculations:**- **Earnings per Share (EPS):** 1. Subtract preferred dividends from net income. 2. Divide the result by the number of shares of common stock outstanding.- **Price-Earnings Ratio (P/E):** 1. Divide the market price per share by the EPS.> **Note:** Always round the final answer as specified in the task instructions.

The question is related to the Earnins per share and Price Earning Ratio. Earnings per share is calculated with the help of following formula Earnings per share = Earnings Available for equity shareholders No. Common stock outstanding Price- Earning Ratio is calculated in times. It is calculated with the help of following formula Price Earnings Ratio = Market price per share Earnings per shareCalculation of Earnings per share Net Income = $916000 Less:- Preferred dividend = ($52000) Earnings for Ordinary Stockholders =$864000 Earnings per share = Earnings Available for Ordinary shareholders No. Common stock outstanding Earnings per share = $864000 90000 Earnings per share = $9.60/Share Calculation of Price-Earnings Ratio Price Earnings Ratio = Market price per share Earnings per share = $108.48 $9.60 Price Earnings Ratio = 11.30 Times. It indicates that the Market price per share is 11.30 times of Earnings per share.