Hello,

The key answer is D but not sure why?

Dalmatian Corporation's annual report is as follows: March 31, 2016 March 31, 2017 Net Income $ 360,000 $ 428,500 Preferred Dividends 0 0 Total Stockholders' Equity S 4,250,000 S 5,102,000 Stockholders' Equity attributable to Preferred Stock 0 0 Number of Common Shares Outstanding 290,464 196,168 If the current market price is $23 on March 31, 2016, compute the price/earnings ratio on March 31, 2017. (Round any intermediate calculations and your final answer to the nearest cent.) O A. 1.76 O B. 2.18 O C. 10.55 O D. 13.07