Income Statement

Sales

$525,000

Cost of goods sold

215,000

Depreciation

65,000

Earnings before

interest and taxes

245,000

Interest expense

35,000

Net profit before

taxes

210,000

Taxes (@ 40%)

84,000

Net income

$126,000

Bavarian Sausage, Inc. has 100,000 shares of common stock outstanding, but no preferred stock. The current price of Bavarians common stock is $15. What is the companys P/E-ratio?