Tito Corporation Had Net Income of $2,000,000 and Paid Dividends

Multiple Choice

Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted average number of shares outstanding in 2017 was 400,000 shares. Tito Corporation's common stock is selling for $50 per share on the NASDAQ. Tito Corporation's price-earnings ratio is

A) 20 times.
B) 12 times.
C) 10 times.
D) 5 times.