Longview Corporation Has a Stock Price of $50, Has Issued

Multiple Choice

Longview Corporation has a stock price of $50, has issued 2,000,000 shares of stock, has retained earnings of $4 million dollars, and a dividend yield of 4 percent. The price-earnings ratio for Longview stock is

A) 25, which is high compared to historical standards of the market.
B) 25, which is low compared to historical standards of the market.
C) 12.5, which is low compared to historical standards of the market.
D) 12.5, which is high compared to historical standards of the market.