Odegaard Corporation's Net Income Last Year Was $1,811,000

Essay

Odegaard Corporation's net income last year was $1,811,000. The dividend on common stock was $3.20 per share and the dividend on preferred stock was $1.00 per share. The market price of common stock at the end of the year was $50.20 per share. Throughout the year, 300,000 shares of common stock and 200,000 shares of preferred stock were outstanding.
Required:
Compute the price-earnings ratio. Show your work!