You have assessed the following information for Kid’s Apparel Ltd. based on your expectations of the company over the next financial year:
Operating profit (before-tax) $13.8 million
Taxable income $10 million
Company tax rate 30%
Authorised share capital 10 million
Issued share capital 7.5 million
Current share price $21.60
Based on the information provided, calculate the company’s price/earnings (P/E) ratio and comment on the company’s growth prospects given that the industry average P/E ratio is 12 times. (please provide workings)