This class has been a bit challenging . I am coming off sick leave and need help finishing this course. I am doing my quiz in the last week. The first problem is with balance sheets.

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

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

Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2017, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)?

What would be the formula?