Kinco Industries had net income for the year 2013 of $650,000. Kinco had an average number of shares outstanding at the end of the year of 725,000 shares. The market price of Kinco's stock on January 1, 2013 was $14 per share. On December 31, 2013, the market price was $16 per share. The price-earnings ratio for Kinco at year end is closest to?

Question

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$650,000 net income/725,000 shares = $0.90 EPS; $16 market price/$0.90 = 17.78

Kinco Industries Had Net Income for the Year 2013 of $650,000