Crestar Company Reported Net Income of $87,400 on 18,000 Average

Multiple Choice

Crestar Company reported net income of $87,400 on 18,000 average outstanding common shares. Preferred dividends total $11,800. On the most recent trading day, the preferred shares sold at $48 and the common shares sold at $78. What is this company's current price-earnings ratio? (Do not round your intermediate calculations.)

A) 16.06
B) 18.57
C) 20.59
D) None of these answers choices are correct.