Toledo Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2009. The weighted average number of shares outstanding in 2009 was 50,000 shares. Toledo Corporation's common stock is selling for $50 per share on the New York Stock Exchange.
Toledo Corporation's price-earnings ratio is:
a. 5 times.
b. 10 times.
c. 8 times.
d. 2 times.