The annual report of Classic Cars Inc. for the year ended December 31, 2017, included the following items (in thousands):

Preferred shares outstanding, $4; 5,000 issued.......................................... $500

Net income................................................................................................. $990

Number of common shares outstanding...................................................... 200

1. Compute earnings per share (EPS) and the price/earnings ratio for Classic Cars's common shares. Round to the nearest cent. The price of a common share of Classic Cars is $77.60.

2. How much does the stock market say $1 of Classic Cars's net income is worth?