Young Corporation's capital stock at December 31 consisted of the following: (a) Common stock, $2 par value; 100,000 shares authorized, issued, and outstanding. (b) 10% noncumulative, nonconvertible preferred stock, $100 par value; 1,000 shares authorized, issued, and outstanding. Young's common stock, which is listed on a major stock exchange, was quoted at $4 per share on December 31 . Young's
net income for the year ended December 31 was $50,000 . The yearly preferred dividend was declared. No capital stock transactions occurred. What was the price earnings ratio on Young's common stock at December 31?
a. 6 to 1
b. 8 to 1
c. 10 to 1
d. 16 to 1
C
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