The Following Information Pertains to the Kathy Company for the Year

Multiple Choice

The following information pertains to the Kathy Company for the year ended December 31, Year 2:
$\begin{array}{ll}\text { Common shares outstanding } & 1,000,000 \\\text { Stated value per share } & \$ 10.00 \\\text { Market price per share } & \$ 80.00 \\\text { Year 1 dividends paid per share } & \$ 4.00 \\\text { Year 2 dividends paid per share } & \$ 5.00 \\\text { Earnings per share } & \$ 8.00\end{array}$

The price-earnings ratio for Kathy's common stock is

A) 8 times
B) 9 times
C) 10 times
D) 12 times
E) 14 times