Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year's financial statements
| Cash |
$ |
35,000 |
$ |
30,000 |
| Accounts receivable |
$ |
60,000 |
$ |
50,000 |
| Inventory |
$ |
55,000 |
$ |
60,000 |
| Current assets |
$ |
150,000 |
$ |
140,000 |
| Total assets |
$ |
450,000 |
$ |
460,000 |
| Current liabilities |
$ |
60,000 |
$ |
40,000 |
| Total liabilities |
$ |
130,000 |
$ |
120,000 |
| Common stock, $1 par value |
$ |
120,000 |
$ |
120,000 |
| Total stockholders' equity |
$ |
320,000 |
$ |
340,000 |
| Total liabilities and stockholders' equity |
$ |
450,000 |
$ |
460,000 |
| |
This Year |
| Sales (all on account) |
$ |
700,000 |
| Cost of goods sold |
$ |
400,000 |
| Gross margin |
$ |
300,000 |
| Net operating income |
$ |
140,000 |
| Interest expense |
$ |
8,000 |
| Net income |
$ |
92,400 |
What is the price-earnings ratio?(Do not round intermediate calculations. Round your answer to 2 decimal places.)