Please could someone give a detailed answer to this problem ? The final answer has to be as : 16:1

On December 31, 2014 and 2015, Williams Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding. Additional information:

Stockholders' equity at 12/31/2015 ...................	$4,500,000
Net income year ended 12/31/2015 .....................	1,200,000
Dividends on preferred stock year ended 12/31/2015 ...	300,000
Market price per share of common stock at 12/31/2015 .	144

The price-earnings ratio on common stock at December 31, 2015, was

a.	10 to 1.
b.	12 to 1.
c.	14 to 1.
d.	16 to 1.