Penny Corporation had profit of $250,000 and paid dividends to common shareholders of $50,000 in 2021. The weighted average number of shares issued in 2021 was 50,000 shares. Penny Corporation's common shares are selling for $40 per share on the Toronto Stock Exchange. Penny Corporation's price-earnings ratio is.....

8 times.

2 times.

5 times.

10 times.

I believe it is 10 times but I need a bit of help to better understand if I am correct...