Answer:
the price earning ratio is 27 times
Step-by-step explanation:
The computation of the price earning ratio is given below;
as we know that
price earning ratio
= Market price ÷ earning per share
= $67.50 ÷ ($150,000 ÷ 60,000 shares)
= $67.50 ÷ 2.5
= 27 times
hence, the price earning ratio is 27 times
Therefore the same should be considered