BVI Corporation Had Net Income of $1,600,000 and Paid Dividends

Multiple Choice

BVI Corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2017. The weighted average number of shares outstanding in 2017 was 500,000 shares. BVI Corporation's common stock is selling for $40 per share on the NASDAQ. BVI Corporation's price-earnings ratio is

A) 3.2 times.
B) 12.5 times.
C) 8 times.
D) 4 times.