Problem
During 2014, Desny Corporation reported after-tax net income of $3,890,000. During the year, the number of shares of stock outstanding remained constant at 10,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at December 31, 2014. Desny Corporation's common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders.
Required
a. Compute the earnings per share. (Round your answer to 2 decimal places.)
b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.)
c. Compute the price-earnings ratio. (Round intermediate calculations and answer to 2 decimal places.)