The following information pertains to Sampson Company. 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: $45,000

Accounts receivable (net): 25,000

Inventory: 20,000

Property, plant and equipment: 210,000

Total assets: 300,000

Liabilities and Stockholder's Equity:

Current Liabilities: $50,000

Long term liabilities: 90,000

Stockholders' equity-common: 160,000

Total Liabilities and Stockholder's Equity: $300,000

Income Statement:

Sales: $120,000

Cost of goods sold: 66,000

Gross Profit: 54,000

Operating Expenses: 18,000

Net Income: 36,000

Number of Shares of Common Stock: 6,000

Market Price of common stock: $33

Dividends per share: 0.50

What is the price earnings ratio for Sampson?

a. 5.5 times

b. 1.1 times

c. 6 times

d. 6.6 times