The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2010 Cash and securities $1,980 Accounts receivable 10,120 Inventories 14,080 Total current assets $26,180 Net plant and equipment $17,820 Total assets $44,000 Liabilities and Equity Accounts payable $8,360 Notes payable 6,160 Accruals 4,840 Total current liabilities $19,360 Long-term bonds $14,960 Total debt $34,320 Common stock $0 Retained earnings 9,680 Total common equity $9,680 Total liabilities and equity $44,000 Income Statement (Millions of $) 2010 Net sales $66,000 Operating costs except depreciation 61,710 Depreciation 1,155 Earnings bef interest and taxes (EBIT) $3,135 Less interest 1,320 Earnings before taxes (EBT) $1,815 Taxes 635 Net income $1,180 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $412.91 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $28.31 What is the firm's P/E ratio? a. 14.6 b. 13.2 c. 12.6 d. 13.9 e. 12.0