The following information pertains to Blue Spruce Corp. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets Cash and short-term investments $ 46100

Accounts receivable (net) 25500

Inventory 29700

Property, plant and equipment 211000

Total Assets $312300

Liabilities and Stockholders Equity Current liabilities $ 56000

Long-term liabilities 83100

Stockholders equitycommon 173200

Total Liabilities and Stockholders Equity $312300

Income Statement

Sales revenue $118000

Cost of goods sold 65100

Gross margin 52900

Operating expenses 36650

Net income $ 16250

Number of shares of common stock 6500

Market price of common stock $27

Dividends per share on common stock 5.70

Cash provided by operations $49000

What is the price-earnings ratio for this company?

10.8 times

5.8 times

3.6 times

4.0 times