Figure 16-1. Starbuck Corporation Had Net Income of $250,000 and Paid Dividends

Figure 16-1.
Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange.
-Refer to Figure 16-1. Starbuck's price-earnings ratio is

A) 2
B) 5
C) 10
D) 8.