Isabella's is a small chain of Mexican food restaurants that features five delicious varieties of salsa. The business has grown over the past ten years from a hobby to a small corporation with 300,000 shares of common stock outstanding. The corporation has not issued any preferred stock. The following is Isabella's latest financial data: Annual earnings $ 750,000 Annual sales $12,650,000 Corporate assets $20,500,000 Corporate liabilities $12,800,000 Cash dividends (annual) $ 0.50 Market price of stock $ 35 What is the price/earnings ratio for Isabella's? 

14.0 

13.6 

32.8 

35.0

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