Reagan Corp. has reported a net income of $811,900 for the year. The company\'s share price is $12.76and the company has 310, 170 shares outstanding. Compute the firm\'s price-earnings ratio up to two decimal places Solution P/E ratio = price per share / earnings per share (EPS) Where EPS = earnings/total shares outstanding=811900/310170 P/E= 12.76*310170/811900=4.87.