This workout asks us to consider a company with the following characteristics, and based on that, to calculate the company's P/E or price earnings ratio. We're given net income in millions, the outstanding number of shares also in millions, and the current market price of the company's stock. So the first thing we need to do to work out our price earnings ratio, we already have the price, the 83 market price. So we need the earnings per share to get the earnings per share. We take the total earnings of the company, that is the net income of 120 million, and we divide that by the number of shares outstanding, which is 20 million to give us EPS of six. And now we can work out the price to earnings ratio by taking the market price of 83 and dividing it by the earnings per share of 6. And that gives us a PE ratio of 13.8 times, meaning the share price is 13.8 times the earnings per share.