Markus Companys common stock sold for $4.75 per share at the end of this year. The company paid a common stock dividend of $0.57 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance	Beginning Balance
Cash	$ 44,000	$ 43,200
Accounts receivable	$ 92,000	$ 66,200
Inventory	$ 73,300	$ 92,000
Current assets	$ 209,300	$ 201,400
Total assets	$ 750,000	$ 809,000
Current liabilities	$ 84,000	$ 87,000
Total liabilities	$ 210,000	$ 189,000
Common stock, $1 par value	$ 158,000	$ 158,000
Total stockholders equity	$ 540,000	$ 620,000
Total liabilities and stockholders equity	$ 750,000	$ 809,000

	This Year
Sales (all on account)	$ 1,080,000
Cost of goods sold	$ 626,400
Gross margin	$ 453,600
Net operating income	$ 276,500
Interest expense	$ 14,000
Net income	$ 183,750

Foundational 14-2 (Algo)

2. What is the price-earnings ratio?