The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Year 2 O a. 8.5 . 12.1 O c. 13.4 O d. 7.5 Year 1 $600,000 $560,000 60,000 40,000 900,000 700,000 125,000 65,000 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 75,000 75,000 310,000 210,000 Retained earnings Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is $30, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation to two decimal places and final answers to one decimal place.)

The balance sheets at the end of each of the first two years of operations indicate the following: Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $20,000 for Year 2 , and the market price of common shares is $30, what is the price-earnings ratio on common stock for Year 2 ? (Round intermediate calculation to two decimal places and final answers to one decimal place.) a. 8.5 b. 12.1 c. 13.4 d. 7.5