Castillo Company reported these figures for 2014 and 2013:

Requirements

1. Compute Castillo Company's earnings per share for 2014. Assume the company paid the minimum preferred dividend during 2014.

2. Compute Castillo Company's price/ earnings ratio for 2014. Assume the company's market price per share of common stock is $ 6.

3. Compute Castillo Company's rate of return on common stockholders' equity for 2014. Assume the company paid the minimum preferred dividend during2014.

2014 2013 Income Statement-partial Net Income 16,600 20,000 Balance Sheet-partial Dec. 31, 2014 $ 240,000 Dec. 31, 2013 $ 255,000 Total Assets Paid-In Capital: Preferred Stock-2%, $10 Par Value; 20,000 shares authorized, 8,000 shares issued and outstanding Common Stock $1 Par Value; 50,000 shares authorized, 30,000 shares issued and outstanding Paid-In Capital in Excess of Par- Common $80,000 $80,000 30,000 30,000 Retained Earnings Total Stockholders' Equity 10,000 60,000 $180,000 10,000 45,000 165,000