Use this information for Kellman Company to answer the question that follow.

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

Kellman Company Year 2 Year 1 Total current assets $611,100 $564,600 Total investments 66,700 50,300 Total property, plant, and equipment 883,100 615,100 Total current liabilities 100,200 87,200 Total long-term liabilities 311,400 242,900 Preferred 9% stock, $100 par 84,900 84,900 Common stock, $10 par 576,700 576,700 Paid-in capital in excess of parCommon stock 67,300 67,300 Retained earnings 420,400 171,000

Using the balance sheets for Kellman Company, if net income is $113,500 and interest expense is $31,900 for Year 2, and the market price of common shares is $47, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)

a. 11.08

b. 10.42

c. 1.84

d. 25.54