Doonan Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,489,000 $1,440,000 Stockholders' equity: Common stock, $4 par value$360,000 $360,000 Additional paid-in capital$70,000 $70,000 Retained earnings$570,000 $550,000 Total stockholders' equity$1,000,000 $980,000 Interest expense$15,000 Income taxes (35%)$14,162 Net income$26,300 The market price of common stock at the end of Year 2 was $4.79 per share.The company's price-earnings ratio for Year 2 is closest to:
A. 10.64
B. 16.52
C. 0.76
D. 7.73
Answer: B
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