Crestar Company Reported Net Income of $112,000 on 20,000 Average

Multiple Choice

Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares. Preferred dividends total $12,000. On the most recent trading day, the preferred shares sold at $50 and the common shares sold at $95. What is this company's current price-earnings ratio?

A) 19
B) 17
C) 20
D) None of these answers choices are correct.