The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $611,899 $590,672 Total investments 61,484 54,298 Total property, plant, and equipment 910,264 641,677 Total current liabilities 104,607 86,747 Total long-term liabilities 284,826 236,636 Preferred 9% stock, $100 par 81,228 81,228 Common stock, $10 par 589,436 589,436 Paid-in capital in excess of par-common stock 67,207 67,207 Retained earnings 456,343 225,393 Using the balance sheets for Kellman Company, if net income is $114,088 and interest expense is $32,396 for Year 2, and market price is $41, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)? Select the correct answer. 10.58 22.65 10.21 1.81 Previous Next >