Using the information from S12-8, a market price of $32 per share, and 100,000 and 110,000 shares of common stock outstanding in 2011 and 2012, respectively, com pute the following for 2012. Round answers to two decimal places.
In S12-8, The 2012 financial statements for Country Music Stores show total assets of $550,000, total liabilities of $302,500, net sales of $1,125,000, net income of $184,500, income from operations of $230,000, cost of goods sold of $735,000, dividends of $22,140, and interest expense of $25,000. Total assets and total liabilities for 2011 were $475,000 and $312,500, respectively. Compute the following ratios for 2012. Round all answers to two decimal places.

1. Earnings per share
2. Price/earnings ratio