A Company Originally Issues 180,000 Shares of Stock at a Price

Multiple Choice

A company originally issues 180,000 shares of stock at a price of $22; one year later the stock price is $40 per share, the number of outstanding shares is unchanged, and the company's net income for the year is $230,400. The P/E ratio at the end of the year is:

A) 0.0002.
B) 24.22.
C) 31.25.
D) 0.0001.