Financial information for Forever 18 includes the following selected data (in millions)

Financial information for Forever 18 includes the following selected data (in millions)

($ In millions)	2015	2014
Net Income	171	201
Dividends on preferred stock	21	16
Average shares outstanding (In millions)	228	300
Stock price	11.97	10.92

Required:

1-a. Calculate earnings per share in 2014 and 2015. (Enter you answers in millions.)

1-b. Did earnings per share increase in 2015?

· No

· Yes

2-a. Calculate the price-earnings ratio in 2015 and 2015. (Enter your answer in millions. Round your answers to 2 decimal places.)

2-b. In which year is the stock period lower in relations to reported earnings?

· 2014

· 2015