On December 31, 2007 and 2008, Taft Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding. Additional information:

Stockholders' equity at 12/31/2008 ....................	$4,500,000
Net income year ended 12/31/2008 ......................	1,200,000
Dividends on preferred stock year ended 12/31/2008 ....	300,000
Market price per share of common stock at 12/31/2008 ..	144

The price-earnings ratio on common stock at December 31, 2008, was

	10 to 1.
	12 to 1.

	14 to 1.
	16 to 1.