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A company has net income of $890,000; its weighted-average common shares outstanding are 178,000. Its dividend per share is $1.05, its market price per share

A company has net income of $890,000; its weighted-average common shares outstanding are 178,000. Its dividend per share is $1.05, its market price per share is $100, and its book value per share is $94.00. Its price-earnings ratio equals:

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  • 7.05.

  • 4.95.

  • 18.80.

  • 6.00.

  • 20.00.

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