The following was provided by Morris Company as of December 31:

Net income $ 528,000

Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000

Common stock, (220,000 shares at $1 par) $ 220,000

Paid-in capital in excess of par-common $ 2,475,500

Retained earnings $ 3,824,500

On the most recent trading date, Morris common shares sold at $36 and the preferred shares sold at $14. The following information on industry averages is provided:

Earnings per share $2.06

Price-earnings ratio 13.2:1

1) Calculate and compare Morris Company's ratios with the industry averages shown above.

2) Would you invest in Morriss Company?