Financial information for Forever 18 includes the following selected data (in millions):

($ in millions)	2018		2017
Net income	$	171	$	201
Dividends on preferred stock	$	21	$	16
Average shares outstanding (in millions)		228		300
Stock price	$	11.97	$	10.92

2-b. In which year is the stock priced lower in relation to reported earnings?

2017 or 2018?

Required information [The following information applies to the questions displayed below.] Financial information for Forever 18 includes the following selected data (in millions): $ $ 2018 171 21 2017 $ 201 $ 16 ($ in millions) Net income Dividends on preferred stock Average shares outstanding (in millions) Stock price 228 $ 11.97 300 $10.92 2-a. Calculate the price-earnings ratio in 2017 and 2018. (Enter your Price-earning ratio values to two decimal places. Enter your answers in millions (i.e. 5,550,000 should be entered as 5.55).) ($ in millions) Price-Earnings Ratio 2017 2018