Financial Information for Retro Designs Includes the Following Selected Data

question 41

Multiple Choice

Financial information for Retro Designs includes the following selected data:
$\begin{array}{lr}\text { Net income (in millions) } & \$ 145 \\\text { Preferred stock dividends (in millions) } & \$ 25 \\\text { Shares outstanding (in millions) } & 240 \\\text { Stock price } & \$ 10.00\end{array}$
What is the company's price-earnings ratio?

• A)20.0.
• B)15.0.
• C)6.9.
• D)0.05.