The following information pertains to Waterway 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	$ 41000
Accounts receivable (net)	30000
Inventory	29000
Property, plant and equipment	206000
Total Assets	$306000
Liabilities and Stockholders Equity
Current liabilities	$ 62000
Long-term liabilities	85000
Stockholders equitycommon	159000
Total Liabilities and Stockholders Equity	$306000
Income Statement
Sales revenue	$ 120000
Cost of goods sold	66000
Gross margin	54000
Operating expenses	30000
Net income	$ 24000
Number of shares of common stock	6000
Market price of common stock	$20
Dividends per share on common stock	$0.50
Cash provided by operations	$33000

What is the price-earnings ratio for this company?

1.4 times

5.0 times

1.0 times

4.1 times