Question $31($Bonus$)(2$ points$)$

BONUS QUESTION

The following information relates to Cordova, Inc.:

Net income for $2016$

Weighted average common shares outstanding for $2016$

Weighted average preferred shares outstanding for $2016$

Cash dividends on preferred stock for $2016$

$$1,704,000$

$160,000$

$50,000$

$$400,000$

$$283,000$

$$160\mathrm{.}00$

$2016$

Per share market price of common stock at December $31,$ $$146\mathrm{.}702016$

Required:

a$.$ Compute Cordova's $2016$ earnings per share.

b$.$ Compute Cordova's price$-$earnings ratio at December $31,2016.$