Hermann Corporation had net income of $200,000 and paid dividends to common stockholders of $50,000 in 2012. The weighted average number of shares outstanding in 2012 was 50,000 shares. Hermann Corporation's common stock is selling for $50 per share on the New York Stock Exchange. Hermann Corporation's price-earnings ratio is:
A) 3 times.
B) 10 times.
C) 12.5 times.
D) 4 times.
