Settles Corporation has provided the following financial data:

Balance Sheet
December 31, Year 2 and Year 1
Assets	Year 2			Year 1
Current assets:
Cash	$	142,000		$	110,000
Accounts receivable, net		104,000			120,000
Inventory		119,000			120,000
Prepaid expenses		37,000			40,000
Total current assets		402,000			390,000
Plant and equipment, net		717,000			720,000
Total assets	$	1,119,000		$	1,110,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	156,000		$	180,000
Accrued liabilities		84,000			70,000
Notes payable, short term		66,000			60,000
Total current liabilities		306,000			310,000
Bonds payable		250,000			250,000
Total liabilities		556,000			560,000
Stockholders equity:
Common stock, $4 par value		240,000			240,000
Additional paid-in capital		90,000			90,000
Retained earnings		233,000			220,000
Total stockholders equity		563,000			550,000
Total liabilities & stockholders equity	$	1,119,000		$	1,110,000

Income Statement
For the Year Ended December 31, Year 2
Sales (all on account)	$	1,360,000
Cost of goods sold		850,000
Gross margin		510,000
Operating expenses		462,692
Net operating income		47,308
Interest expense		19,000
Net income before taxes		28,308
Income taxes (35%)		9,908
Net income	$	18,400

Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.

The companys price-earnings ratio for Year 2 is closest to: