XYZ Inc's total common shares outstanding are 93,810 on Dec 31, Year 3, and 108,360 on Dec 31, Year 4. The company also has $763,940 of preferred shares cost balance. The preferred shares have a dividend rate of 7.69%. If the company's net income is $933,830 in Year 4, what is the company's price earnings (P/E) ratio in Year 4 if the average share price is observed to be $109.43 per share? Assume there are no other transactions during the year in the equity balances other than the net income and the dividends. Also assume that the simple average number of common shares works out to be the same as the weighted average number of common shares.

Question 11 options:

	12.64
	12.96
	13.27
	13.59
	13.90