Problem $11-8$ Calculating Earnings per Share and Price$-$Earnings Ratio $[$LO$3]$

As a shareholder of an oil company, you receive its annual report. In the financial statements, the firm reported assets of $$15$ million, liabilities of $$9$ million, after$-$tax earnings of $$3$ million, and $761,000$ outstanding shares of common stock.

a$.$ Calculate the earnings per share of this oil company$$s common stock. $($Round your answer to $2$ decimal places. Omit the $"$$$"$ sign in your response.$)$

Earnings per share $

b$.$ Assuming a share of this oil company$$s common stock has a market value of $$40,$ what is the firm$$s price$$earnings ratio? $($Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole number.$)$

Price$-$earnings ratio