Given the Following Information What Is the Price/earnings Ratio?
A)3

Multiple Choice

Given the following information: $\begin{array}{lr}\text { Preferred dividends}&\$50\\\text {Income taxes }&\$200\\\text { Average number of sharess outstanding}&250\text { shares}\\\text {Market price per common share }&\$10\\\text { Net income}&\$600\\\end{array}$
What is the price/earnings ratio?

A) 3.3 times
B) 2.9 times
C) 3.8 times
D) 4.5 times