Selected data for Putin Company for 2014 and additional information on industry averages follow.

Earnings (net income)

$

185,000

Preferred stock (13,000 shares at $40 par, 2%)

$

520,000

Common stock (44,900 shares no par, market value $51)

520,000

Retained earnings

567,500

$

1,607,500

Less: Treasury stock

Preferred (1,300 shares)

$

55,000

Common (1,300 shares)

23,000

78,000

Total Stockholders equity

$1529500

Industry averages
Earnings per share	$	4.40
Price-earnings ratio		9.80
Return on equity		11.90	%

Calulate price earnings ratio and return on equity