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Orchard Corporation's capital stock at December 31 consisted of the following:

(a)	Common stock, $2 par value; 100,000 shares authorized, issued, and outstanding.
(b)	10% noncumulative, nonconvertible preferred stock, $100 par value; 1,000 shares authorized, issued, and outstanding.

Orchard's common stock, which is listed on a major stock exchange, was quoted at $4 per share on December 31. Orchard's net income for the year ended December 31 was $50,000. The yearly preferred dividend was declared. No capital stock transactions occurred. What was the price earnings ratio on Orchard's common stock at December 31?

a.	6 to 1
b.	8 to 1
c.	10 to 1
d.	16 to 1