Ketchen,Inc The Company Has No Preferred Stock Outstanding

Multiple Choice

Ketchen,Inc.provides the following information for 2018: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 270,000 \\\hline \text { Market price per share of common stock } & \$ 55 \text { per share } \\\hline \text { Dividends paid } & \$ 180,000 \\\hline \text { Common stock outstanding at Jan. } 1,2018 & 160,000 \text { shares } \\\hline \text { Common stock outstanding at Dec. } 31,2018 & 240,000 \text { shares } \\\hline\end{array}$$ The company has no preferred stock outstanding.Calculate the price/earnings ratio of common stock.(Round any intermediate calculations and your final answer to two decimal places.)

A) 48.67 times
B) 55.00 times
C) 40.74 times
D) 32.54 times