A company has net income of $860,000; its weighted-average common shares outstanding are 172,000. Its dividend per share is $1.35, its market price per share is $106, and its book value per share is $103.00. Its price-earnings ratio equals:
A. 1.65.
B. 21.20.
C. 4.35.
D. 3.00.
E. 20.60.
Answer: B
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