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

	2016	2015
Total current assets	$600,000	$560,000
Total investments	60,000	40,000
Total property, plant, and equipment	900,000	700,000
Total current liabilities	125,000	80,000
Total long-term liabilities	350,000	250,000
Preferred 9% stock, $100 par	100,000	100,000
Common stock, $10 par	600,000	600,000
Paid-in capital in excess of par--common stock	60,000	60,000
Retained earnings	325,000	210,000

Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)?

Question 57 options:

a)

14.9

b)

18.4

c)

17.3

d)

19.8