Basta Corporation's Net Income Last Year Was $1,401,000

Essay

Basta Corporation's net income last year was $1,401,000.The dividend on common stock was $1.00 per share and the dividend on preferred stock was $3.90 per share.The market price of common stock at the end of the year was $65.40 per share.Throughout the year,300,000 shares of common stock and 100,000 shares of preferred stock were outstanding.
Required:
Compute the price-earnings ratio.Show your work!