Question 12.

The balance sheets at the end of each of the first two years of operations indicate the following:

	Year 2	Year 1
Total current assets	$629,300	$593,600
Total investments	61,500	48,600
Total property, plant, and equipment	851,300	678,000
Total current liabilities	101,000	80,100
Total long-term liabilities	293,100	245,400
Preferred 9% stock, $100 par	97,800	97,800
Common stock, $10 par	514,800	514,800
Paid-in capital in excess of parcommon stock	63,900	63,900
Retained earnings	471,500	318,200

If net income is $110,300 and interest expense is $42,500 for Year 2, and the market price of common shares is $45, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)

A.1.97

B.22.84

C.10.68

D.10.30