Rocket Corp. earned net income of $153,040 and paid the minimum dividend to preferred stockholders for 2024. Assume that there are no changes in common shares outstanding during 2024. Rocket’s books include the following figures:

Requirements
1. Compute Rocket’s EPS for the year.
2. Assume Rocket’s market price of a share of common stock is $12 per share. Compute Rocket’s price/earnings ratio.

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Preferred Stock-6%, $60 par value; 2,000 shares authorized, 1,000 shares issued and outstanding Common Stock-$5 par value; 80,000 shares authorized, 48,000 shares issued, 46,700 shares outstanding Paid-In Capital in Excess of Par-Common Treasury Stock-Common; 1,300 shares at cost $ 60,000 240,000 470,000 (26,000)