The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Note: In the calcuation, round the earnings per share amount to the nearest cent.


Cash and short-term investments $36,295
Accounts receivable (net) $29,590
Inventory $38,477
Property, plant and equipment $234,471
Total Assets $338,833

Liabilities and Stockholders’ Equity

Current liabilities $68,880
Long-term liabilities $89,407
Stockholders’ equity-common $180,546
Total Liabilities and stockholders’ equity $338,833
Income Statement
Sales $89,866
Cost of goods sold $40,440
Gross margin $49,426
Operating expenses $21,599
Net income $27,827
Number of shares of common stock 6,652
Market price of common stock $34

What is the price-earnings ratio for this company?

(I need a detailed answer please where you first calculate earnings per share)

The formula for the price-earnings ratio is the following:

market price per share of common stock/earnings per share on common stock