8. The following information pertains to Rural Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 40.000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant and equipment 215.000 Total Assets $310,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity-common Total Liabilities and Stockholders' Equity $ 60.000 75.000 175.000 $310.000 Income Statement Sales Cost of goods sold Gross profit Operating expenses Net income $ 95,000 45,000 50,000 15,000 $ 35,000 Number of shares of common stock Market price of common stock Dividends per share 5,000 $21 1.00 What is the price-earnings ratio for Rural? A) 8 times B) 4.0 times C) 7.0 times D) 3.0 times