Acme Widget,Inc

Multiple Choice

Acme Widget,Inc.has 1,000 shareholders who own a total of one million shares of its common stock.The stock currently sells for $85 per share.The company earned $5 million after taxes.The annual dividend is $0.50 per share.The company has assets of $125 million and liabilities of $25 million.What is the P-E ratio?

A) 10
B) 11
C) 13
D) 17
E) 20